Form W-2 #1: Employer HSA contributions from the federal form W-2, box 12, code W

Forum|Forum|3 months ago
March 26, 2026
2 replies
13 views

A taxpayer contributed $5,300.00 to HSA and the amount was reported on 2025 W-2, box 12, code W.
This amount $5,300.00 is showing as added back to California which is correct. However, Proconnect is giving me a Critical Diagnostics saying:

Form W-2#1: Employer HSA contributions from the federal form W-2 box 12, code W are to be reported as an add-back on California Schedule CA, Part I, line 1h, colum C. The program can't determine if the employer HSA contributions have been included in ...

Why is this a critical diagnostics when it is correct?
Does anyone have some information that you can share?

ProConnect Tax

sjrcpa

Level 15

It is an FYI. Since it is correct, move on.

The more I know the more I don’t know.

C

Cheers1Author

Level 3

Thanks for your feedback. However, i can't ignore the Critical Diagnostics because I won't be able to e-file with Critical Diagnostics..

sjrcpa

Level 15

Are you sure this Diagnostic prevents efiling?

The more I know the more I don’t know.

S

SLK1

Level 2

I have the same problem. Got the answer from the assistant: Try input the HSA amount in State & Local/Modification/CA Modification field. Check the CA Sch CA Column to see if the HSA amount doubled (one from W2 Box 12 input, one from State & Local input). If it does, input minimum (rounding amount $1) in the State & Local input) so it won't affect Fed numbers. I hope this helps.

C

Cheers1Author

Level 3

Thanks so much SLK1.

When I input HSA amount in State & Local/Modification/CA Modification field, it doubled the amount, as you mentioned.

I contacted the support and they recommended to ignore the critical diagnostics by marking the box to ignore the critical diagnostics.

I gave them a feedback that the software should recognize the adjustment on State and should not be showing up under the critical diagnostics. Hopefully they can update their software.

sjrcpa

Level 15

Glad it only took you 2 weeks to do what I said. 😃

The more I know the more I don’t know.

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