HSA Amend Return question please help

[pepsiytw]

Hi guys I've already filed 2019 return and received refund, after I got my refund I made additional 2200 USD out of my own pocket to my 2019 HSA so i can max it out. now my Fidelity HSA account just got updated and  the 2200 dollars i put in shows up on form 5498-SA.

So my question is how can I filed a amend return and what's the steps on that? also how much credit I can get it back, full amount 2200 or just some of it. 

Please help thank you very much

[BillM223 · Accepted solution]

You can amend your return by following the steps in this TurboTax FAQ.

You may find it necessary to add a state (even though you have no intention of doing so) so that TurboTax will let you in to amend the return.

Once in, do a Search (upper right) for hsa and click on the jump-to result. Then progress through the HSA interview until you come to the screen with the heading "Let's enter [name]'s HSA contributions".

The first line on this screen should have the code W in box 12 from your W-2 (if any). You want to enter your $2,200 contribution that you made directly to the HSA (outside of your employer) in the second line.

Other things being equal, this will reduce your taxable income by $2,200 (this deduction will appear on line 12 of Schedule 1 (1040).

Your tax will be reduced by $2,200 times your marginal tax rate, again, other things being equal (so your results may vary).

[pepsiytw]

Thank you very much for your help but i just realized I made huge mistake. I just realized I did not add up one of my previous employer's HSA contribution  so with additional fund I put in to my HSA I actually OVER contributed 840 dollars.. OMG I felt so bad now. Is that mean I am owning IRS taxes now ? Is too late to fix now since I've already filed my 2019 taxas ?

I was actually followed your steps trying to do amend return. When I put 2220 in that " Let's enter ___HSA contribution" the system shows 270 return instead 2220, that where I start dig in and find out I over contributed , they also asking some numbers from Form 8889 and Form 5329-T which I have no idea where do i get those.. so I put 0 in most of the boxes (those things i dont know). 

After everything done system still shows me 270 refund and ask me to print and mail to IRS. I do not know should I do it or not. is that means it fixed my over contribution problem ? what should i do?

Thank you  

[BillM223 · Accepted solution]

You can fix this, if you do it soon.

First, it sounds like you were in the process of amending your return when you got this message about the $840 excess HSA contribution. What you want to do is this:

1. Go back through the interview and reduce the direct HSA contribution from 2,200 to 1,360 (2,220 - 840).

2. Continue - the excess contribution should now not appear.

3. Contact your HSA custodian before July 15th and ask for the "withdrawal of excess contributions" (use this exact phrase). Ask for the $840. Note that there may be an online form at the custodian's website.

4. File your amended return - note that it does not matter in which order you do 1 and 3, so long as both occur before July 15th.

You may or may not get an amended 5498-SA - it doesn't matter if you do or not.

Early next year, you will get a 1099-SA with a distribution code of '2', showing the amount of earnings on the excess contributions. Add this to your 2020 return. 

***

Note, if you indicated on the first pass that you were going to withdraw X dollars for the excess contributions, sometimes that number "sticks" in the software. When you see the HSA Summary, the value for excess contributions should be zero, and the value of the deduction should be the $1,360. The employer contributions should be whatever number is with code W in box 12 on your W-2.

If you can't get this to work, you will need to do a "reset" and delete all your HSA data and re-enter it.

If you need to do this, please do the following:

1. make a copy of your W-2(s) (if you don't have the paper copies)

2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen)

*** Desktop***

3. go to View (at the top), choose Forms, and select the desired form. Note the Delete Form button at the bottom of the screen.

*** Online ***

3. go to Tax Tools (on the left), and navigate to Tools->Delete a form

4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)

5. go back and re-add your W-2(s), preferably adding them manually

6. go back and redo the entire HSA interview.

[pepsiytw]

wow you are awesome. 

Thank you very much !!!