LogFAQs > #894437617

So I feel like my W2 I received from my company is wrong.

My company changed our healthcare mid-year to a HSA system but also changed it so that healthcare was free rather than us contributing towards it. I thought no problem, all the money I was contributing towards the previous plan I would just put into the HSA.

Except now on my W2 all the money I put into the HSA is tagged as 'W' which says the employer put that money into the account for me which is not the case, I voluntarily put my money into it. So it counts as additional earnings and decreases my return. It looks like it decreases it by the amount I would have been taxed on if that was normal income which doesn't seem right for 2 reasons to me. HSA's are supposed to be Tax Free right otherwise why wouldn't I just dump it into savings instead? And that money isn't additional earnings as it is my own money, not extra money the company is giving me.

Or am I misunderstanding how HSA earnings are supposed to work? Like if that is working as intended, what is even the benefit of using a HSA instead of a savings account as it looks like I'm getting taxed on it both ways anyway and a savings account would at least have the benefit that I could spend it on other stuff if I needed/wanted to.