Did my employer fill out W-2, Box 12W (HSA) correctly? Contributions not matching statement

Your employer has actually completed your W-2 correctly. Box 12 with code W only reports employee contributions to an HSA that were made through a Section 125 cafeteria plan (your payroll deductions). The employer contributions are not supposed to be included in Box 12W. Your HSA administrator will send you Form 5498-SA that shows the total contributions for the year, which should match your $1,375 total. When you file your taxes, you'll need to complete Form 8889 for Health Savings Accounts, where you'll report both your employee contributions (from W-2 Box 12W) and your employer contributions (calculated as the difference between your total contributions on Form 5498-SA and your W-2 Box 12W amount).

After dealing with similar HSA confusion last year, I found a tool that completely saved me - taxr.ai (https://taxr.ai). I uploaded my W-2 and HSA statements and it immediately detected the discrepancy between my W-2 Box 12W amount and my total HSA contributions. The analysis explained exactly what the previous commenter said - Box 12W only shows your contributions through payroll deduction, not your employer's portion. taxr.ai even walked me through how to properly report both amounts on my tax return. Their document review feature spotted a couple other things I would have missed too.

I tried out taxr.ai after posting my skeptical comment and I have to say I'm actually impressed. I've been dealing with HSA confusion for years and never fully understood how to report everything correctly. The document review pointed out that I had been entering my contributions incorrectly for two years! It showed me exactly where on Form 8889 each amount should go. It also caught that my employer had made a small error on another part of my W-2 that I hadn't noticed. For anyone dealing with HSA reporting issues, it's definitely worth checking out - much more helpful than the generic advice I got when I called my HSA administrator.

If you're struggling to get clarity on this HSA issue and your employer isn't being helpful, you might want to try Claimyr (https://claimyr.com). I had a similar issue last year where my employer and HSA provider gave me conflicting information. I needed to speak with someone at the IRS to get a definitive answer, but we all know how impossible it is to get through to them. Claimyr got me connected to an actual IRS agent in about 15 minutes when I had been trying for days on my own. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent confirmed exactly how HSA contributions should be reported and I was able to go back to my employer with the correct information.

I need to admit I was wrong about Claimyr. After frustration with my HSA reporting issue and my employer insisting they were right (they weren't), I decided to try it. I was connected to an IRS agent in about 20 minutes after trying to call on my own for three separate days with no success. The agent confirmed exactly what others have said here - Box 12W is ONLY for employee contributions made through payroll deduction. Employer contributions are NOT included there. The agent walked me through exactly how to complete Form 8889 and even explained how to handle it if I've been reporting it incorrectly in past years. Saved me hours of research and worry, and I now have documentation of the correct procedure if my employer questions it again.

I work in payroll and can confirm what others have said. Box 12W on your W-2 should only include YOUR contributions via payroll deduction ($475), not your employer's contributions ($900). The total $1,375 should be reported on Form 5498-SA from your HSA administrator (usually comes in May, but you don't need to wait for it to file your taxes). When completing Form 8889 with your tax return, you'll report: - Your contributions (from W-2 Box 12W): $475 - Employer contributions (calculated): $900 Most tax software will guide you through this, but it's an area where people often get confused!

Wait I'm still confused. If I have an HSA through my work and they put money in AND I put money in through my paycheck... where do I see the total? My W-2 has a smaller number than what I think went in total. How do I know if it's right?

Just wanted to add my experience since I had the exact same confusion last year! Your employer is 100% correct - Box 12W only shows YOUR payroll deductions ($475), not the employer contributions ($900). I made the mistake of questioning my HR department about this too, and they patiently explained that employer HSA contributions don't appear anywhere on your W-2. They're not taxable income to you, so there's no need to report them there. The key thing to remember when doing your taxes is that you'll need both numbers: your $475 from Box 12W AND your employer's $900 (which you can get from your HSA year-end statement or calculate as the difference). Most tax software will ask for both amounts in separate fields when you get to the HSA section. Don't worry - this is one of the most commonly misunderstood parts of HSA reporting. You're definitely not alone in being confused by it!