Only if your employer believed that your HSA contributions were not excludible from your income should your employer not have excluded the code W amount from the amount in boxes 1, 3, and 5 of your W-2. If the employer had no reason to believe that the HSA contributions were not excludible from your income and mistakenly did not reduce your box 1, 3 and 5 amounts by the code W amount, contact your employer to obtain a corrected W-2.
Otherwise, you'll need to treat the code W amount as being a personal HSA contribution rather than a contribution made through your employer. In the HSA portion of the interview, on the Let's enter your HSA contributions page, TurboTax will show the code W amount as employer and payroll contributions. Enter this same amount as a contribution that you personally made. Click Continue, then enter in the box for Employer and payroll contributions not reported in box 12 of your W-2 a negative entry to cancel out the amount TurboTax is treating as the employer amount to be reported on Form 8889 line 9. You'll end up with a zero on Form 8889 line 9 and a deduction on Form 1040 line 25. There's a chance that the IRS will question the claiming of a deduction for the code W amount, so be prepared to provide explanation, if need be.
Only if your employer believed that your HSA contributions were not excludible from your income should your employer not have excluded the code W amount from the amount in boxes 1, 3, and 5 of your W-2. If the employer had no reason to believe that the HSA contributions were not excludible from your income and mistakenly did not reduce your box 1, 3 and 5 amounts by the code W amount, contact your employer to obtain a corrected W-2.
Otherwise, you'll need to treat the code W amount as being a personal HSA contribution rather than a contribution made through your employer. In the HSA portion of the interview, on the Let's enter your HSA contributions page, TurboTax will show the code W amount as employer and payroll contributions. Enter this same amount as a contribution that you personally made. Click Continue, then enter in the box for Employer and payroll contributions not reported in box 12 of your W-2 a negative entry to cancel out the amount TurboTax is treating as the employer amount to be reported on Form 8889 line 9. You'll end up with a zero on Form 8889 line 9 and a deduction on Form 1040 line 25. There's a chance that the IRS will question the claiming of a deduction for the code W amount, so be prepared to provide explanation, if need be.
Code W in box 12 reports both the amount of your employer's contributions to your HSA and the employee's contributions . These employer's contributions are in addition to your wages. The amount is not deducted from your wages reported in boxes 1, 3 and 5.
The deductibility of the total contributions to your HSA depends on your answers to the questions in the TurboTax HSA interview.
In my case The amount in box 12w is the amount of my contribution ($5000) - the employer did not contribute to the HSA. If I follow turbo tax instructions the total amount I contributed to the HSA will be taxed since the contribution was not subtracted in box 1, 3 & 5 of the W2. I think the employer should have subtracted the $5000 from Box 1,3,5.
The deductibility of your contributions is determined by your answers in the HSA interview in TurboTax.
The HSA interview in Turbo Tax does not help - W2 Box 12W is $5000 all of which was employee contributions by me. It appears that turbo tax assumes that the employer has subtracted the employees HSA contribution from Boxes 1,3 &5 of the W-2. The only way I can make it work so that I am not taxed on the $5000 that I contributed is to reduce the Boxes 1,3,5 of the W2 by $5000 which would not be appropriate since I would be changing numbers reported to the IRS.