Cheers1
Level 2

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?

 

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