HSA employer contribution error!?! PLEASE HELP

Forum|Forum|5 years ago
February 14, 2021
2 replies
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For the year 2020, only I had an HSA. My spouse had no HSA. Yet TurboTax insists that I had an HSA deduction and she had an HSA employer contribution - in the same amount - for 2020. It will NOT let me change her HSA employer contribution value to $0. Therefore, somehow it thinks we overcontributed in 2020.

Is there some way to somehow reset this portion of my return?

please help! thanks...

AnnetteB6

Level 15

The employer HSA contribution amount is transferred from W-2 entries. You should double-check your spouse's W-2 and see if there is an entry in Box 12 with Code W and an amount. If so, that is indicating a contribution to a Health Savings Account.

Another thing to check is the ownership of the W-2 to be sure it is tied to the correct person. If your W-2 was entered as your spouse's W-2, that would also transfer the contribution amount to the HSA section.

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cragar11Author

Level 2

Annette - You are so correct!!!
I had gone back to the W-2s and found that my spouse's name was incorrectly entered in my W-2.
Feeling kinda stupid - THANK YOU for your quick answer and for the accuracy of your solution.

Craig Dunn

Macintire88m

Level 2

My W2 has $7000 in Box 12c W. My gross earnings in Box 1 are already reduced by this amount. Why is Turbo Tax including in the deductions ?

DaveF1006

Level 15

It shouldn't unless you reported this contribution additionally as a contribution you personally made. To check to see if you entered this twice, go to:

Federal>deductions and credits>
medical>HSA, MSA Contributions
If you reach a summary page showing your HSA Summary, select edit. But before you do, check to see if a deduction or a distribution is listed in that summary that is in addition to your Tax-free employer contribution.
After you select edit, go through the questions. Pay particular attention when you reach a page that says let's enter your HSA contributions. See if there is an entry that says Any contributions you personally made
(not through your employer) If there is an amount recorded, remove it.
Also make sure your deduction is not a distribution. It will show up as a distribution in your return unless you finish the section stating it isn't Medicare and that you are covered by a high Deductible Health Plan.

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Macintire88m

Level 2

Dave - thank you for your reply. I checked it again. The $7000 is still showing as Tax Free Employer Contributions on the Your HSA Summary page. I have also entered the info from my 1099-SA which is $6912 and it shows on the Your HSA Summary page as Total Distributions. All other lines are zero.

Do I need to go in and remove the 8889 form ?