W2 box 12d code W increased my taxes owed. I had to dig around help for a while to find out that MUCH later in the interview the medical spending account contributions will be covered and changed to non-taxable income. PLEASE FIX this so you don't scare folks, pop up a warning or something when this happens, and/or move the 1095-C entry to right after entering W2 information to set it right.
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TurboTax considers this amount taxable until you complete the health insurance interview that indicates that you had qualifying health insurance for the entire year. This is the way the program has always worked. If you enter everything in order and don’t skip around, you will get the questions in the right order and won’t have a problem.
Thank you for the non-answer, I did actually say that, where a later step in the step-by-step does catch that up and change it back to non-taxable, which is the same answer you just parroted back at me.
What I actually posted is that the UI Design needs a tweak, like adding one of those question mark icons next to box 12c that pop-up some useful information like "Code W - contributions to HSA are not taxed if made under a qualifying plan which will be validated when entering your 1099-SA. Turbo Tax will treat it as taxable income until the 1099-SA info is entered" or something like that.
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