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

[Cheers1]

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?

[sjrcpa]

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

[Cheers1]

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]

Are you sure this Diagnostic prevents efiling?

[SLK1]

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.

[Cheers1]

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]

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