Confused about Sprintax W-2 Box 12, Code W for HSA as nonresident alien

Wait, so nonresident aliens can't even have HSAs? My employer set one up for me automatically when I started my job here on my H1-B. Nobody ever told me I couldn't have one! Does this mean I need to close my HSA account and withdraw all the money? Will I get penalized?

Nonresident aliens technically aren't eligible to establish or contribute to HSAs under most circumstances. This is because HSA eligibility requires you to be covered by a high-deductible health plan (HDHP) and not be covered by any other health insurance, including being enrolled in Medicare, and you must be a U.S. resident for tax purposes. If your employer automatically set up an HSA, you should definitely discuss this with both your employer's HR department and potentially a tax professional. You won't necessarily be penalized, but you'll need to properly address this on your tax return. Many people find themselves in this situation because employers often automatically enroll employees without checking visa status.

Does this taxr thing work for all tax forms? I've been getting totally confused by some K-1 forms I received this year that have weird codes and numbers I don't understand at all.

I'm curious - how exactly did you handle the HSA contribution in the end? Did you have to file that 8889 form the original poster mentioned or did you have to do something else entirely? My wife is on an F-1 visa and we're trying to figure out the same issue.

Yes, it works for pretty much all standard tax forms including K-1s. I've used it for W-2s, 1099s, and even some more complicated forms. It explains all those mysterious codes and numbers in normal language anyone can understand. For the HSA contribution issue, I ended up needing to report it as taxable income since as a nonresident I wasn't eligible for the HSA tax benefits. I didn't need to file Form 8889, but I did need to make sure the HSA contribution amount was properly included in my taxable income. The tool walked me through exactly how to handle it on my 1040-NR.

How does this actually work? I've tried calling the IRS dozens of times and always get disconnected. Are you saying there's actually a way to skip the phone queue somehow?

This sounds super sketchy. How can some random service get you through to the IRS faster than calling directly? Sounds like either a scam or they're doing something shady to cut in line. I'd be very cautious about using something like this.

It uses a callback system that continually redials the IRS for you using their automated system. When you call the IRS directly, you have to manually keep redialing if they disconnect you due to high call volume, which happens constantly. With Claimyr, their system handles all that for you and calls you back once they get through to an agent. It's completely legitimate - all they're doing is automating the redialing process that most of us don't have time for. The service connects directly to the IRS's official phone system, and you're speaking with actual IRS representatives. They just solve the frustrating part of constantly having to redial when the lines are busy.

Wow, that's a really good point that I completely missed! You're right - I didn't take any distributions from my HSA, so not getting a 1099-SA would be expected. I think the Sprintax agent might have confused me even further. So given that I'm a nonresident alien, should I just make sure that the HSA contribution amount from W-2 Box 12 Code W is included in my taxable income? And skip Form 8889 entirely?

Yes, that's exactly right. As a nonresident alien filing 1040-NR, you generally need to make sure the HSA contribution is included in your taxable income. The W-2 Box 12 Code W shows the amount that was contributed. Since Box 1 matches Box 16 on your W-2, it sounds like the contribution was already included in your taxable wages, which is correct for your situation. And yes, you can skip Form 8889 as it's not applicable for nonresidents who aren't eligible for HSA tax benefits.

TurboTax doesn't handle 1040-NR forms at all - it's designed for residents filing regular 1040 forms. I tried it last year and had to switch to Sprintax mid-process when I realized TurboTax couldn't handle my nonresident return.

This is really helpful clarification! I'm also a nonresident alien (on F-1 visa) and have been struggling with the same HSA confusion. It's good to know that if Box 1 matches Box 16 on the W-2, it means the employer already handled it correctly by not excluding the HSA contribution from taxable income. I was getting worried that I'd made some major tax mistake by having an HSA account that my employer set up automatically. Sounds like as long as the contribution is properly included in taxable income (which it seems like it already is based on the W-2 boxes matching), then we're in compliance even though we can't claim the HSA tax benefits that residents get. Thanks for taking the time to call the IRS and share what you learned - definitely saves the rest of us from the same headache!