Mismatch between W2 (Box 12 Code W) and 5498-SA (Box 2)

[ksarnt]

I have a question regarding my HSA contribution in 2022. For 2022 I contributed $5,800 and my employer contributed $1,500 bringing total 2022 HSA contribution to $7,300. By mistake Employer did not stop HSA deduction from my payroll after reaching yearly max of $7,300 and continued HSA deductions from my payroll. I raised issue with my employer and they paid me the excess deducted amount of $1,000 through regular payroll and FICA and other taxes were properly deducted on the amount.

Even though I was paid excess amount through payroll, employer initially  did not remove the excess amount from my HSA account and when I raised the issue with employer again they removed higher amount than original excess amount (removed $1,500 instead of $1,000) from my HSA account. No entries where made in paystub to reflect the additional $500 removed from HSA custodian.

Based on my 2022 Dec paystub, my 2022 W2 Box 12 Code W will have $7,300 but based on HSA custodian website 2022 contribution summary, i guess 5498-SA from HSA custodian will show $6,800 ($500 less). It took long time for my employer to pay me excess deduction and also to deduct amount (even though wrong amount) from my HSA account. I think it will take long time for my employer to look into the issue and put back $500 to my HSA account. Even if it is eventually corrected most probably it will happen after tax filing deadline for 2022.

If I am fine with losing $500 from my HSA account will IRS question the difference between 2022 W2 (12 Code W) and 5498-SA (Box 2)? I am planning to use $7,300 from W2 in Turbotax when I prepare my taxes for 2022.

[tagteam]

@dmertz 

[Critter-3]

How about you wait for the actual W-2 form to be issued and if the form is wrong you get it corrected before you file a return ?  Or better yet ask the employer if they have made arrangements for the W-2 to be correct the first time it is issued.  

[ksarnt]

Thanks for the response. I already reached out to the employer a month back about the discrepancy and they have not responded yet. I reached 2022 HSA max limit of $7,300 by mid April 2022 and after excess contribution happened at end of April, it took the employer 4 months to pay me back the excess deduction, and then it took them another 3 months to deduct from my HSA account. I hope they fix the issue before the W2 is issued or at least by tax filing deadline in April 2023 but based on my experience so far I don't have high hopes this will be fixed soon.   I will certainly wait until April to see if this will be fixed but I am just trying to figure out how to proceed if this does not happen by April. Is going with W2 HSA contribution number fine even if it is different(more) than 5498-SA number?

[Critter-3 · Accepted solution]

You can always file a "mismatched" return and explain it later to the IRS but be prepared to support your position ... have all the supporting documents available that show how you came to that determination.  Some written correspondence with the employer trying to get the incorrect W-2 fixed and their refusal to do so would be key.