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February 12, 2025
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HSA Contributions 2024

  • February 12, 2025
  • 1 reply
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I don't quite understand this section, I have a Box 12W on my W2 with a contribution amount, although Turbotax has a 0 in the first section on the interview. Then the next section in Turbotax is the personally made contributions not through my employer box. Where do I enter my contribution amount?  My employer and myself made contributions to this although I don't see where to enter how we contributed.

 

Thanks.

Turbotax 2024 Premier 

    Best answer by BillM223

    The total of what your employer contributed to your HSA plus whatever you contributed through payroll deduction is supposed to be in box 12 on your W-2 with a code of W. You should not enter this code W amount anywhere else on your return.

     

    The amount that you (all) contributed through payroll deduction is called "the employer contribution", even though you made some or all of it. In this case, "the employer contribution" means that this number will be removed from Wages in boxes 1, 3, and 5, so they are not taxed. This is IRS terminology, which is the source of infinite confusion.

     

    In any case, if the code W amount includes your payroll deduction, then everything is OK. There is NO need to enter your contributions anywhere else.

    1 reply

    BillM223Answer
    February 12, 2025

    The total of what your employer contributed to your HSA plus whatever you contributed through payroll deduction is supposed to be in box 12 on your W-2 with a code of W. You should not enter this code W amount anywhere else on your return.

     

    The amount that you (all) contributed through payroll deduction is called "the employer contribution", even though you made some or all of it. In this case, "the employer contribution" means that this number will be removed from Wages in boxes 1, 3, and 5, so they are not taxed. This is IRS terminology, which is the source of infinite confusion.

     

    In any case, if the code W amount includes your payroll deduction, then everything is OK. There is NO need to enter your contributions anywhere else.

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    ahosslerAuthor
    February 15, 2025

    Hello,

     

    Thanks for the quick reply. The W2 has 12W on it for just acknowledgement? I fail to see the reason why I shouldn't need to add it to TurboTax on any form. So, they already have deducted it so I'm not taxed?

     

    Allen

     

     

    February 15, 2025

    The amount from Box 12, Code W, will automatically flow to the HSA contribution screen.  By completing the Box 12 input in your W-2 input, you are adding it to TurboTax, and the proper form (8889) will populate. 

     

    Additionally, since the amount of HSA contributions you made was already deducted from Box 1 on your W-2, you are not being taxed on it.