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Employer deducted my HSA contribution but it does not show in line 12 W

Forum|Forum|3 years ago
March 13, 2023
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Hello,

Have a question about my HSA contribution if someone can guide me..

My employer made HSA contribution on my behalf as it shows that amount in the 5498-SA that I received from the company who manages the HSA account. But in the W2 received from the employer, it does not show any 12W amount . When I entered all the lines from W2 in Turbotax, while working on the deductions it shows I did "not" make any HSA contribution. Should I enter the amount from 5498-SA as HSA contribution I made on my own?

Best answer by dmertz

There is no note. In the HSA section TurboTax simply allows you to indicate amounts that were omitted from your W-2 so that they will appear on Form 8889 as employer contributions.

Note that in addition to including the contribution with code W in box 12 of your W-2, the employer should not have included this amount in box 1 of your W-2. (If the employer included this amount in box 1, you could simply indicate that the amount was a personal contribution and receive a deduction for the contribution.)

M

Mike9241

if the employer made the HSA contribution out of its own funds and/or deductions from your paychecks, the employer must report those contributions on 12W. contact your employer for a corrected W-2. that amount would flow to form 8889 which you would need to complete. without a corrected W-2 you can expect a letter from the IRS. any amount taken from your paychecks to fund the HSA is supposed to reduce taxable wages in box 1 so you might want to check to see if box 1 is correct. other items like your contributions to an employer-sponsored retirement plan can also reduce box 1 wages.

J

JQ6Author

Hello Mike9241,

Your response is much appreciated - Thank you!

I've reached out to this former employer and have not head back. Its a small company and their payroll is processed by ADP. I'm wondering if I reach out to them if they will be more responsive. I can't imagine a large and well establish company like ADP would make such an error.

D

dmertz

Employee

If the employer won't correct the W-2, in TurboTax you can indicate that your employer told you about other HSA contributions and enter the amount the employer contributed on your behalf for 2022.

J

JQ6Author

Hello demertz,

Thanks for your reply, much appreciated. Where in Turbotax can one put that note you mentioned? will that also be submitted to IRS or is it a note just for myself?

D

dmertzAnswer

Employee

There is no note. In the HSA section TurboTax simply allows you to indicate amounts that were omitted from your W-2 so that they will appear on Form 8889 as employer contributions.

Note that in addition to including the contribution with code W in box 12 of your W-2, the employer should not have included this amount in box 1 of your W-2. (If the employer included this amount in box 1, you could simply indicate that the amount was a personal contribution and receive a deduction for the contribution.)