What is the Code for a HSA on W2? - Understanding Health Savings Accounts

When it comes to tax season, many individuals wonder what the code for a HSA on a W2 form is. A Health Savings Account (HSA) is a tax-advantaged savings account that allows individuals to save money for qualified medical expenses.

The code for a HSA on a W2 is typically reported in Box 12 with the code 'W'. This indicates that an employee has contributed to a Health Savings Account during the tax year.

Health Savings Accounts offer several benefits, including tax deductions for contributions, tax-free growth on the savings, and tax-free withdrawals for qualified medical expenses. By understanding the code for a HSA on a W2, individuals can accurately report their HSA contributions and take advantage of the tax benefits.

During tax season, it's essential to know how to correctly report your finances. One key aspect to be aware of is the code for a HSA on your W2 form. This code, 'W', found in Box 12, signifies that you have made contributions to your Health Savings Account over the past year.