My employer might be coding Box 12a W incorrectly on my W2 - they refuse to fix it?

You're right to be concerned! Box 12 code W on your W2 should only show your HSA contributions (both yours and any employer contributions), not your healthcare premiums. The confusion might be happening because your employer is incorrectly including your premium payments in both Box 12W and Box 12DD. Box 12DD is correct in showing the total cost of employer-sponsored health coverage (premiums paid by both you and employer), but those premium amounts shouldn't also be in Box 12W. The IRS Instructions for Forms W-2 and W-3 clearly state that Code W is for "Employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria) plan) to your health savings account." Healthcare premiums are separate from HSA contributions. You can show your employer IRS Publication 969 and the W-2 instructions as evidence. Don't worry too much though - when you file, you'll report your actual HSA contributions on Form 8889, which will override what's on your W-2.

After dealing with almost this exact situation last year, I found a solution using taxr.ai that saved me tons of headache! My W2 had similar issues with Box 12a code W including both HSA contributions and healthcare premiums. I uploaded my W2 and pay stubs to https://taxr.ai and their system immediately flagged the discrepancy. They provided a detailed analysis explaining exactly what should be included in Box 12W versus Box 12DD according to current IRS guidelines. The report even cited specific IRS publications and code sections that I could show my stubborn HR department. Their document analysis helped me understand exactly how to file Form 8889 correctly despite my employer's error. The best part was getting a customized letter I could give to my employer explaining the error - my company actually fixed my W2 when they saw the documentation!

Just wanted to update everyone - I tried taxr.ai after seeing the recommendation here and WOW it was exactly what I needed! My situation with dependent care FSA reporting was different from the HSA issue, but the concept was similar (employer coding things incorrectly on W2). I uploaded my documents and within a day received a comprehensive analysis that clearly explained where my employer went wrong. The report included references to specific IRS publications that addressed my exact situation. What impressed me most was how they explained exactly how to fill out my tax forms to avoid any issues with the IRS, even without getting my employer to fix anything. The personalized employer letter they provided was professional and cited all the relevant tax codes. I sent it to HR and actually got a response! They're issuing a corrected W2 now. This saved me so much stress and potential issues with the IRS down the road. Definitely worth checking out if you're dealing with employer W2 errors.

I had the EXACT same problem last year with my W2 and wasted weeks trying to get through to the IRS for clarification. After getting nowhere with my employer, I tried using Claimyr (https://claimyr.com) to actually get through to a human at the IRS. It was honestly a game-changer. I had been trying for DAYS to reach someone at the IRS about this Box 12W issue, getting disconnected or waiting hours only to have the system hang up. With Claimyr, I had a callback from the IRS within 2 hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed exactly what you suspected - Box 12W should ONLY include HSA contributions, not healthcare premiums. They were able to note this discrepancy in my file and gave me specific instructions on how to file Form 8889 correctly. I showed the notes from this call to my employer and they finally issued a corrected W2.

I need to apologize for being so skeptical earlier. After struggling with a similar W2 issue (mine was related to stock compensation reporting in Box 12), I finally broke down and tried Claimyr last week. I honestly can't believe how well it worked. After THREE MONTHS of trying to reach the IRS myself with absolutely no success, I got a call back from an actual IRS agent in about 90 minutes after using Claimyr. The agent was knowledgeable about my specific issue and confirmed I was right about how my employer should be reporting the compensation. The agent even sent me an email with documentation I could show my employer, which I did, and they're now processing a corrected W2. I wasted so much time trying to do this myself when I could have resolved it months ago. If you're dealing with employer W2 errors like this HSA reporting issue, getting confirmation directly from the IRS is definitely the way to go.

Have you considered just filing your taxes with the Form 8889 showing your actual contributions? My accountant told me that the HSA reporting on Form 8889 is what the IRS actually uses to determine if you've over-contributed, not necessarily what's on your W2. You would report the full amount from Box 12W on line 2 of Form 8889, but then work through the form correctly to show your actual contributions. The form will calculate if you've actually over-contributed based on your inputs, not just what appears in Box 12W. If you're using tax software, it should walk you through this properly. I had a similar situation (though with 401k reporting) and it worked out fine.

This is a common issue! I'm a benefits administrator and see this all the time. The problem is that many payroll systems automatically bundle Section 125 cafeteria plan pre-tax deductions together in reporting, which is why your premiums are getting lumped in with HSA contributions. Your employer should fix this, but here's what you need to know: the IRS will NOT automatically penalize you based solely on Box 12W amounts. When you file Form 8889 with your taxes, that's what determines if you've over-contributed. Pro tip: Get a year-end statement directly from your HSA provider showing your exact contribution amount for the year. This serves as proof of your actual contributions if you're ever questioned.