HSA contirbutions noted on the w-2

[JenMO]

when the W code for HSA and an amount is listed, is that a pretax item? or is it able to be a deduction on the 1040? how do you know?

[Burke]

Code W means the employer either deducted these from the wage earner's pay pre-tax or paid them himself, or a combination of the two. When you code this in your software, it will flow thru to Form 8889. As long as it does not exceed the maximum, nothing happens since it is tax-sheltered. If it exceeds the allowable amount, that portion may be taxable. Hopefully, this is not the W-2 of a more-than-2% shareholder in an S-Corp since that has to be handled differently.

[BP.]

W code for HSA and an amount is listed

BTW, seeing that on a W-2 prompts the question of whether they took distributions for medical expenses. People aren't so good yet at supplying the 1099-SA, but the distributions also need to be reported on the 8889.