Should HSA contributions via payroll deduction appear on my W2?

[spicykissa]

For the past two years, I have maxed out my HSA via biweekly payroll deductions. These are listed on my paystubs as under "deductions" (along with taxes, parking, 401k, and health insurance). My employer does not contribute to my HSA at all. Deeply buried elsewhere on my HR website, it breaks the deductions out on a yearly basis and says the HSA, parking, 401k, and health insurance are pretax.

There is no box 12 code W on my W2. But, per the "Instructions for Employees", I think there should be, as it reads "W—Employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria) plan) to your health savings account. Report on Form 8889, Health Savings Accounts (HSAs)."

Last year, my accountant took a deduction for my HSA contributions, assuming they were post-tax because they did not appear on the W2 (his words). That seemed right at the time, but in retrospect, we obviously double-dipped, right? To make it more confusing, the total gross wages on my final paystub is about $5000 higher than what is reported in Box 1 of the W2. Is the HSA already pulled out? I can't get it to work out no matter how I add up the numbers.

Any help before I bring this up with HR would be appreciated. I know it's ultimately my fault, but I'm not happy about having to amend the prior tax return and I can't be the only employee this affects, right?

[wbranch]

Box 1 of the W2 would be after 401k, HSA, health insurance, and certain other types of insurance. Box 5, medicare wages would be gross, less HSA and health insurance. You should be able to reconcile those numbers to the end of year paystub.

I agree that box 12 code W should include those HSA contributions. It does sound like you may have double dipped, but you should work on reconciling the W2 to the paystub to know for sure.

[seattlecyclone]

Yep, they should have reported any employer and employee payroll contributions in Box 12. Not sure how to reconcile any other discrepancies you may be seeing. Sounds like an amended tax return would be the honest thing to do, even if what you filed matched the W-2 and therefore shouldn't be a big audit risk.

[spicykissa]

Box 1 of the W2 would be after 401k, HSA, health insurance, and certain other types of insurance. Box 5, medicare wages would be gross, less HSA and health insurance. You should be able to reconcile those numbers to the end of year paystub.

Ah, sorry. I meant box 5. If I add Box 1 to Box 12 code E (retirement contributions; I actually have a 403b), it equals Box 5 exactly. 

I think I figured this part out . . . If I subtract health insurance and HSA from my EOY paystub gross wages, it is still ~$1200 more than the gross reported in box 5. This was a great clue. I get $1200 in continuing education reimbursement annually from my employer, so I think that must be the discrepancy there.

But the HSA contributions should definitely be on the W2, right? I've had an HSA for 3 years now, and they never have been, so I just want to make sure. 

[spicykissa]

Sounds like an amended tax return would be the honest thing to do, even if what you filed matched the W-2 and therefore shouldn't be a big audit risk.

Yes, that's what I figured. The way we did it last year must have looked right as rain to the IRS, and as long as my HR doesn't fix the W2s going forward, I could merrily continue double-dipping forever with no one the wiser. Almost makes me wish I hadn't noticed.

[Nate79]

Its all fun and games until you get audited by the IRS.....

Sent from my SM-G950U using Tapatalk

[Cpa Cat]

Its all fun and games until you get audited by the IRS.....

Most IRS auditors are on the same level as a local H&R Block employee. But with worse computers and awful software.