BillM223
Expert Alumni

Get your taxes done using TurboTax

1. You do not need or want a corrected W-2. 

 

2. "If you remove your excess contribution after December 31 but before the due date of your personal income tax return (April 15 most years), you must notify your employer, who then will issue a corrected Form W-2."" - This is simply wrong. 

 

3. Either your employer made a mistake in not stressing to the HSA custodian for which year the contribution was for, or the HSA custodian made a mistake in their paperwork on which year they marked the contribution for. The problem is that after January 1st, it's difficult to get either one of them to fix it.

 

4. However, you have the easiest fix:

A. enter the W-2 as is (with the code W amount)

B. Enter the HSA interview and enter the 1099-SA with code '1' if you have one

C. Enter the 1099-SA with the code of '2' on next year's return (yes, in 2024)

D. When TurboTax tells you that you have excess contribution, be agreeable and say that you will withdraw all of them before April 18th (the 169). Don't worry about the 165.

E. In this way, you will be done with this, except that in 2024 (for 2023), you will enter the 1099-SA with code '2' to report the earnings, and make sure that you indicate that you do not have HDHP coverage.

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