When I added the information from box 12W on my W-2, my refund decreased dramatically. I thought HSA money was not taxed? Any idea what happened here? Thanks in advance!

[amedeo602]

Married filing jointly, multiple W-2's (this was on about the 4th one we entered -- none of the others have any info in box 12W), refund dropped from ~4200 to ~3500.

[Opus 17 · Accepted solution]

HSA contributions are considered taxable income until you complete the section on health insurance to indicate that you had a qualifying HDHP that makes your contributions non-taxable.  Keep working the interview and don't skip any steps.  I believe you have the opportunity to answer this both on the income page in the 1099-SA section (if you also have HSA withdrawals) and on the health insurance section on the deductions and credits page.

[joeljuarez77]

I have the same problem, but haven't received my 1099-SA yet so haven't entered that information.  I hope the above answer is correct because my refund had a drastic change when I entered the amount in 12W.  I'll find out tonight.  1099-SA is finally available.