Employer HSA Contribution

[Jdrager]

I have already filed our taxes and just received an email from my employer that the $1,200 employer provided contribution was not properly reported. Box 12a W went from $2,049.84 to $3,249.84. Do I need to refile my federal taxes? I live in Georgia. Would I also need to refile those as well?

[MinhT1]

If the error was only for the employer contribution to your HSA not being reported in box 12 code W of your form W-2 and you did not receive a corrected W-2 (form W-2c), then this does not affect your taxes, and you do not need to amend your tax returns (Federal and State).

[Jdrager]

MinhT1,

Thanks for the quick reply. I did receive a W-2c. It has a previously reported amount and a correct information amount. The difference between the two numbers is the $1200 employer contribution. Does that mean I do need to amend my state and federal return? Is the employer contribution considered taxable income?

Jdrager

[BillM223]

The employer contribution - when properly substantiated by HDHP coverage - is not taxable. 

Note that when the code W amount is created, then when the W-2 is printed, the code W amount is removed from Wages in boxes 1, 3, and 5. So you need to ask your HR department, was the correct code W amount removed from Wages in boxes 1, 3, and 5 so that only the code W amount in box 12 was incorrect, or were the Wages updated on the W-2 when the code W amount was corrected? Actually, I assume you can see this on your two W-2s, but it would be good to ask, since if they had made one mistake, they could probably make another.

Having said that, if the Wages amount in boxes 1, 3, and 5 was not correct on your original W-2, then you will need to amend both your federal and state return, since your Wages will be overstated (therefore, higher tax).