Why is Turbo Tax saying my HSA is overfunded?>

Forum|Forum|4 years ago
March 1, 2022
17 replies
111 views

My employe has the box W on my tax form that indicates the amount put into my HSA. I originally had entered my HSA tax document as well and thought that it was counting it twice.
I cleared my tax entries and started over this time only entering my W-2 information and not my HSA yet it still says I'm overfunded by the exact amount contributed in 2021. Why is it doing this and how do I fix it?

TurboTax Deluxe Online

JamesG1

Level 15

At the screen Let's enter your HSA contributions, did you enter the amount that was reported in box 12 of your W-2?

If so, that would have double reported the HSA contribution that you made and could result in an overfunding status.

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aship95Author

Level 2

Okay so should I not enter box 12 of my tax forms and instead enter my 1099-SA?

BillM223

Level 15

To be clear, you ARE supposed to enter your W-2 information on your W-2.

And in the HSA interview, when you are asked if you paid for anything out of your HSA, you must answer "yes", so that you can see the screens into which you will enter your 1099-SA information.

However, when you are asked about "personal" HSA contributions, do NOT enter the amount from box 12 on the W-2 or any part of it.

However, because we don't know what you've entered, please do the following to clear all HSA data from your return before you start over with the HSA stuff again:

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.

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Anonymous

I deleted everything like you said and even didn’t enter any amount into the contributions, it is still saying it’s overfunded.

AmyC

Level 15

Have you answered the HSA questions regarding qualification? I think you have not marked that it was HDHP so that you qualify. Any amount would be overfunded if you don't qualify. Please verify that you have marked the answers appropriately and are eligible.

About Form 8889, Health Savings Accounts breaks down eligible individual, contributions, etc if you need additional help in determining requirements.

@5495875

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