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posted May 31, 2019 7:50:43 PM

W2 box 12 code w is being taxed

My W2 has a code W (HSA contributions) in box 12. When this amount changes my refund amount changes as well. This should not be taxable income. I haven't gotten my 1099 SA yet so I can only assume that is the reason it's being taxed right now, but I've never had the issue before this year. Has anyone else experienced this or know of a way to fix it?

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1 Best answer
Level 8
May 31, 2019 7:50:45 PM

I believe there was a message that tells you to complete the HSA interview in the Medical deduction section. Until you complete that exercise, the program has no way to know if your HSA contributions are allowed.

2 Replies
Level 8
May 31, 2019 7:50:45 PM

I believe there was a message that tells you to complete the HSA interview in the Medical deduction section. Until you complete that exercise, the program has no way to know if your HSA contributions are allowed.

Level 9
May 31, 2019 7:50:49 PM

As rebab said, until you tell TurboTax that you qualify to contribute to a HSA, TurboTax taxes that and charges you a penalty.  Later on in the interview when you say you had a High Deductible Health Plan and no other insurance, it will remove the tax and penalty.