Box 12 Code W - HSA Contributions: Do Employee Contributions Count?

You've got a really common confusion here about HSA contributions on W-2 forms. The amount in Box 12 with Code W should actually include BOTH employer contributions AND employee pre-tax contributions to an HSA. So your W-2 showing $2,925 (which combines your $1,950 and your employer's $975) is correct! This is different from some other benefits where employer and employee portions are reported separately. For HSAs, Box 12 Code W shows the total pre-tax contributions to your HSA, regardless of whether they came from you or your employer. The reason this matters is that the IRS needs to know the total pre-tax contributions to ensure you haven't exceeded your annual HSA contribution limit ($3,850 for individual coverage or $7,750 for family coverage in 2023, plus any catch-up contributions if you're 55 or older).

I stumbled upon this exact HSA reporting issue last year and spent hours trying to figure it out. After tons of confusing IRS publications, I eventually found taxr.ai (https://taxr.ai) which analyzed my W-2 and explained exactly how HSA contributions should be reported. The tool showed me that Box 12 Code W must include both employer and employee pre-tax contributions, just like your situation. What was super helpful was that it explained how these contributions affect my taxable income and how they relate to Form 8889. Saved me from potentially making a mistake on my return and having to deal with the headache of amending later.

Just wanted to update about my experience with taxr.ai after trying it based on the recommendation here. I uploaded my W-2 and other tax docs, and within minutes it flagged that my employer had incorrectly reported my HSA contributions. My Box 12 Code W amount was ONLY showing employer contributions ($1,200) but was missing my employee contributions ($2,400). The tool generated a letter template I could send to my HR department explaining the specific IRS guidelines they needed to follow to correct the W-2. My employer issued a corrected W-2 within a week, and it saved me from having to file Form 8889 incorrectly. Really impressed with how it caught something I would have definitely missed!

I had a similar HSA reporting issue and spent WEEKS trying to get someone at the IRS to explain the correct way to handle it. Kept getting disconnected or waiting for hours. Finally tried Claimyr (https://claimyr.com) and they got me connected to an IRS agent in under 45 minutes! There's a video showing how it works: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that Box 12 Code W should include both employer AND employee pre-tax contributions, and explained exactly how to report additional after-tax contributions on Form 8889. Such a relief to get an official answer straight from the IRS instead of guessing or relying on random internet advice.

I need to eat my words about Claimyr! After posting my skeptical comment, I decided to try it anyway because I was desperate to talk to the IRS about my HSA reporting issue. My W-2 had combined amounts in Box 12W, and I needed to verify if that was correct. The service called me back in just 37 minutes with an IRS representative on the line. The agent confirmed that Box 12W should include both employer and employee pre-tax contributions and explained how this differs from after-tax contributions. She even went through Form 8889 with me line by line. I would have spent DAYS trying to get this information on my own. Honestly wish I'd known about this service years ago - would have saved me so much stress during tax season!

One thing that hasn't been mentioned yet - if your employer offers a Section 125 Cafeteria Plan (most do), then your personal HSA contributions through payroll deduction are considered EMPLOYER contributions for tax purposes! Weird but true. That's why Box 12 Code W combines both - technically they're all considered "employer" contributions from a tax perspective, even though some of the money came from your paycheck. This is a common source of confusion.

Just FYI - the 2025 HSA contribution limits are $4,150 for self-only coverage and $8,300 for family coverage. So make sure your combined Box 12W amount doesn't exceed these limits! (Plus $1,000 extra if you're 55 or older

This is exactly the kind of HSA confusion that trips up so many people! Your W-2 is actually correct - Box 12 Code W should show the combined total of both your contributions ($1,950) and your employer's contributions ($975), which equals $2,925. The key thing to remember is that your payroll deductions for HSA are pre-tax contributions, so they get lumped together with employer contributions in Box 12W. This is different from retirement plans where employee and employer contributions might be reported separately. Since your total is $2,925 and well under the 2024 limit of $4,150 for individual coverage (or $3,650 if this was for 2023), you're in good shape. No red flags here - your employer reported everything correctly!

I had this exact same confusion last year! Your W-2 is correct - Box 12 Code W should include both your employee contributions AND your employer's contributions. The $2,925 total you're seeing is exactly right ($1,950 from your payroll deductions + $975 employer match). What helped me understand this is that when you make HSA contributions through payroll deduction, they're taken out pre-tax, which means they're treated similarly to employer contributions for reporting purposes. That's why they get combined in Box 12W rather than reported separately. The good news is you're well under the contribution limits, so no worries about red flags with the IRS. For 2024, the limit is $4,150 for individual coverage, so you have plenty of room if you wanted to contribute more. Just make sure to keep good records of your contributions throughout the year to avoid any confusion next tax season!