Fact Check: Are hsa contributions on w2?

Are HSA Contributions Reported on W-2 Forms?

Introduction

The claim in question is whether contributions to Health Savings Accounts (HSAs) are reported on W-2 forms. This topic is particularly relevant for employees who utilize HSAs as part of their healthcare benefits, as it affects how they report their contributions for tax purposes.

What We Know

1. HSA Contributions: HSAs are tax-advantaged accounts that allow individuals to save money for medical expenses. Contributions can be made by both employees and employers, and there are annual limits set by the IRS 18.

2. W-2 Reporting: According to IRS guidelines, employer contributions to HSAs are reported in Box 12 of Form W-2 using Code W. Employee contributions made through payroll deductions are also included in this box 3910.

3. Tax Reporting: Employees must report their HSA contributions on Form 8889 when filing their tax returns. This form is used to calculate the tax deduction for contributions and any taxable distributions from the HSA 15.

4. IRS Publications: The IRS provides detailed instructions regarding the reporting of HSA contributions. For example, Publication 969 outlines how HSAs function and the reporting requirements for contributions 2.

5. Contribution Limits: The IRS sets annual contribution limits for HSAs. For 2023, the limit for individual coverage is $3,850, and for family coverage, it is $7,750 8.

Analysis

Source Evaluation

• IRS Publications (1, 2, 3, 4): The IRS is a primary and authoritative source for tax-related information. Its guidelines are generally considered reliable and are the basis for compliance in tax reporting. However, they may not always provide the most user-friendly explanations, which can lead to misinterpretations.

• TaxAct (5): This source provides practical guidance on tax filing but is a commercial entity that may have a slight bias toward promoting its services. However, it cites IRS guidelines, which adds to its credibility.

• Complete Payroll Solutions (6): This blog offers insights into HSA compliance for employers. While it provides useful information, it is essential to consider that it may have a vested interest in promoting payroll services.

• The Motley Fool (9): This financial advice website is generally reliable but may present information with a bias toward financial products. It cites IRS guidelines, which enhances its credibility.

• WTW (10): This source provides insights into HSA tax filing tips. As a consulting firm, it may have a bias toward promoting its services, but it references IRS documentation, which is a positive aspect.

Conflicting Information

While most sources agree that employer contributions to HSAs are reported in Box 12 of Form W-2, there is some ambiguity regarding the treatment of employee contributions. Some sources suggest that employee contributions are also included in Box 12, while others emphasize that only employer contributions are reported there 69. This discrepancy highlights the need for clarity in IRS guidelines.

Methodology and Evidence

The claim regarding HSA contributions on W-2 forms is supported by multiple authoritative sources, primarily the IRS. However, the interpretation of what is included in Box 12 can vary. More detailed examples or case studies from the IRS could help clarify these reporting requirements.

Conclusion

Verdict: True

The evidence indicates that contributions to Health Savings Accounts (HSAs) are indeed reported on W-2 forms. Specifically, both employer contributions and employee contributions made through payroll deductions are reported in Box 12 of Form W-2 using Code W. This conclusion is primarily supported by IRS guidelines and various authoritative sources that confirm the reporting requirements.

However, it is important to note that there is some ambiguity regarding the specific treatment of employee contributions, as some sources suggest differing interpretations. This highlights a potential area of confusion for taxpayers and emphasizes the need for clear guidance from the IRS.

While the available evidence strongly supports the claim, it is essential to acknowledge that interpretations of IRS guidelines can vary, and individuals should consult the IRS or a tax professional for personalized advice. Readers are encouraged to critically evaluate information and seek clarification when necessary to ensure accurate tax reporting.

Sources

1. IRS Publication 969 (2024), Health Savings Accounts and Other Tax-Favored Health Plans. IRS
2. IRS Publication 969 (PDF). IRS
3. IRS Form W-2 Reporting of Employer-Sponsored Health Coverage. IRS
4. IRS General Instructions for Forms W-2 and W-3 (2025). IRS
5. Employer Contributions to Your Health Savings Account (HSA). TaxAct
6. HSA Contributions: A Guide To Compliance In 2023 For Employers. Complete Payroll Solutions
7. How do I complete the Health Savings Account section in the return? TaxSlayer
8. 2023 HSA Max Contribution Limits - New IRS Increase. SHRM
9. Health Savings Account Rules (HSA Rules) in 2023 and 2024. The Motley Fool
10. HSA Tax Filing Tips: What Your Employees Need to Know. WTW