W2C issued. Box 12a W HSA total changed slightly. Do I need to file amended return(s)?

[JKNYC]

My HSA provider neglected in the original W2 to add the employer / wellness contributions in addition to my own and issued a W2-C.  The new amount on there is +$165 in my favor.  I ran it through the amended return process in TurboTax and there appears to be no impact on taxes owed or a greater refund state or federal.

a)  Do I need to file an amended Federal because it's possible the numbers would change on Form 8889, or do I not need to file but keep the W2-C handy in case its ever questioned as the amount is negligible?

b)  Assuming I do need to file amended, would I need file state as well?  The state impact was $0 as well, so nothing owed/refunded.

[MaryK4 · Accepted solution]

No you do not need to amend your tax return.  Because the HSA contributions did not result in an overcontribution (which TurboTax would have indicated), it is not necessary to amend.  You are 100% correct that you just need to keep a copy of the corrected W2, and you should also keep the TurboTax entry (or at least a copy of the return with the addition) to show that it did not affect your tax due.

[JKNYC]

Do you mean start the amended process and just screenshot the entry change reflecting the greater amount in 12W and then the main screen after you next through everything (it was the only change), showing box 1 was still the same?   Just curious what you meant by that.  Thank you for you answer and any additional information.

[MaryK4]

Sorry for the confusion.  You can just leave the return with the entry- as you said, you ran through the amend process and since there is no change, do not try to "back out" the entry- when you use TurboTax next year it will transfer the information but because you did not overcontribute you do not have to worry about TurboTax prompting about it.  @JKNYC 

[JKNYC]

I don't know what is meant by 'back out'.  If you don't need to file amended, just cancel the amended return process, leave it alone and just have W2-C in your records just in case, and that's enough, no?

[LindaS5247]

Yes, you are correct. You can cancel your amendment and not file it. Keep your Form W2-C in your files for documentation purposes.