W-2 Box 12 Code W

[gman]

Code w is for employer contributions to HSA. My tax programs carries it to form 8889 line 9 & 11. Is there anything else that must be entered on this form?. I have no information that any other contributions(employee) were made to this account, or that any distributions were made.

[Mike Mac]

I think most software should have another form or worksheet where you must indicate if the HSA was for an individual or family plan and indicate how many months the employee was eligible for the coverage during the year. Until I fill in the information in my software the benefits remain taxable.

[mrbill]

W-2 Box 12 Code W

You are correct in that the amount is carried to 8889 - line 9 & 11. At least up to the maximum allowed. However, an important piece concerns form 1099-SA which lists the distributions, presumably to pay medical expenses. This figure goes onto line 14a, and winds up on line 15, which should resolve the reporting issues. Are HSA's tricky ? In the words of S.P. - "You Betcha" Cheers,

[Greenbriar]

Can't resolve my issue

Mr. Bill to follow up, please. My client has 3,900 Code W on W2 and 1099-SA box 1 gross distribution of 2,999. Result is 3,900 Other Income on Line 21 of 1040. Everything I read is employer contributions are generally not taxable but I can't seem to get rid of the taxable income on line 21. Using Proseries and scoured form 8889 but can't seem to get eliminate the taxable income. Would appreciate any help. thanks.

[AJsTax]

To remove the taxable

portion of the HSA there is most often one line left out. It was mentioned above. For the inputs for form 8889 you must enter the amount of the qualifying medical expenses that the distribution covered. But if the amount showing as taxable is the total amount contributed (which is the employer amount AND any amount contributed by the employee pre-tax) then most likely you did not answer the question that the employee is enrolled in an eligible high deductible medical plan. That could be one check box or one answer on the form. This was all stated above.

[ruthc]

Line #3 on Form 1099SA

To check whether it's for a single or family go to Form 8889 line #1.
After filling in Form 1099SA did you go to the bottom of the form to fill in #3? You need to fill in how much was used for medical expenses?
Let's see if that works for you.