What Code is HSA Contribution on W-2 Form?

One of the common questions that arises during tax season is what code is the HSA contribution on the W-2 form. Understanding this code is important for individuals who have contributed to a Health Savings Account (HSA) during the year.

When you contribute to an HSA, the contributions are typically not subject to federal income tax. As a result, these contributions are not included in the 'Wages, tips, other compensation' box of your Form W-2. Instead, the HSA contributions will be reported in a separate box labeled 'HSA contributions' or 'Distributions from an HSA'.

It's essential to keep in mind that the HSA contributions may also be reported in Box 12 of the W-2 form with the code W. This code indicates the amount of HSA contributions made by both you and your employer, if applicable.

During tax season, understanding the code for HSA contributions on your W-2 form is crucial for accurate reporting. This code ensures that the contributions you made to your Health Savings Account (HSA) are properly recognized by the IRS.