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Discussion:W-2 box 12 code W

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Discussion Forum Index --> Advanced Tax Questions --> W-2 box 12 code W

Discussion Forum Index --> Tax Questions --> W-2 box 12 code W

Nwtax (talk|edits) said:

8 March 2013
Hi all,

The facts:

-code W in box 12 for $3100

- in real life: ee put $2600 and er put $500 (tota: 3100) intothe ee's HSA

THE PROBLEM: (in ProFx and another software) if I leave the entry on the W-2 input sheet AND fill the HSA page, I'm getting an over-funding of HSA: add'l tax in line 58 of the 1040

SOLUTION? if I don't input the code W ($3100) info, it's fine. no duplication of HSA contributions.

I guess I can just leave out the info on the W-2 page and report the HSA on the 8889.

does it sound right?


CrowCPA (talk|edits) said:

8 March 2013
That is how I do it - enter the info on the HSA sheet but do not enter the code W information on the W-2 entry screen. I'm surprised that ProFx is messed up this way - usually they are quite good, especially on the federal stuff, but this area could use some improvement.

JR1 (talk|edits) said:

March 8, 2013
The correct answer is to correct the W2 of course.

Joan TB (talk|edits) said:

8 March 2013
Was $2,600 by employee already after-tax? You should be able to tell by the taxable wages vs SS wages boxes. If so, does your way "double dip"? If this IS already after-tax, then Code W on W-2 only and Form 8889 correctly shows no further deduction for HSA contribution.

Riki EA (talk|edits) said:

8 March 2013
On the W-2 form, Box 12 code W includes pretax employee contributions to the HSA deducted from pay, as well as employer contributions. These wouldn't be deducted again on the 1040. Try to figure out whether the HSA employee amount has already been backed out of income on the W-2, before assuming it is incorrect. With our clients, we find that the amounts that you put on the 8889 for employee contributions are ones that they sent in on their own, not ones that were deducted from pay, which already have been deducted from income.

Nwtax (talk|edits) said:

8 March 2013
The $2600 was ee's actual pmts.

I'll double-check if it was pre tax. At this point i know it wasn't. Thx much for your input

JR1 (talk|edits) said:

March 8, 2013
So if it's post-tax, the W2 reporting is incorrect. If pre-tax, then W2 is ok, just misleading. I didn't realize W included both ER and EE pretax...

Doug M (talk|edits) said:

9 March 2013
NWtax--I use pfx also.

You only list the EE contributions done with post tax $$ in field 42 of input form M-19. Leave the W code on the W-2.

I am guessing that the employer has either an FSA or a Section 125 plan, and his contributions were done through one of these two plans. And the W-2 is correct if my hunch is correct.

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