Wow...HSA's & Taxes...

[humandraydel]

I'm very confused by HSA's and taxes. I thought my contribution to the HSA was supposed to be tax free, but looking at my W-2 it doesn't look like it is? Shouldn't Box 1 (Wages) be reduced by the amount I contributed to my HSA? For example, let's assume my numbers are these:

Box 1 - Wages - $45,000
Box 3 - Social Security Wages - $50,000
Box 12b - 401k Contribution - $5,000
Box 12c - HSA Contribution - $2,000



Based on these numbers, shouldn't Box 1 be $43,000 (= 50,000 - 5,000 - 2,000)? Because my W-2 matches the above scenario where Box 1 (wages) is only Box 3 (SS Wages) minus my 401k contribution.

And yes, I procrastinated on my taxes

[humandraydel]

Ok, I should have "googled" it first. Apparently HSA contributions are not even subject to SS & Medicare tax. So, it won't show up in Box 3. That's good, except it's hard for me to verify that because I work OT sometimes so my W-2 never shows JUST my salary.

[MonkeyMama]

HSAs can be extraordinarily complex.

That said, if they reported it in Box 12, that does mean it was treated as a pre-tax contribution by your employer. Your actual salary was $2,000 higher than Box 3, as you already figured out.

[humandraydel]

HSAs can be extraordinarily complex.

No kidding. Last month rule...testing period...IRA rollovers...I vote for simplifying the tax code!