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Hi, all,

 

I believe this is a bug in TurboTax (in both desktop and on-line versions).  I usedProConnect (another software by Intuit).  The treatments are very different. 

 

Background: The over-contributed $130 in the year 2021 was withdrawn in the year 2022.  In 1099-SA, box 3 has code "2-Excess contributions" as the distribution code.  

 

In TurboTax's 8889 form, $130 is not taxable.  

8889-TurboTax.png

Therefore, in 5329, I continued to have $130 excess contribution.

5329-TurboTax.png

And, the $130 is never added to my income in the year 2022. 

1040-TurboTax.png

 

However, ProConnect treated it differently.  In 8889, $130 distribution is considered taxable.

8889-ProConnect.png

Then, I no longer have excess contributions in 5329 after the year 2022. 

5329-ProConnect.png

Furthermore, $130 is added to my total income.

1040-ProConnect.png

Any comments are welcome.