DanaB27
Expert Alumni

Get your taxes done using TurboTax

To verify, did you also receive a 2021 Form 1099-SA? What code?

 

An excess contribution on your 2021 tax return triggers that only the excess contribution is added in Other Income on Schedule 1 (assuming this was a contribution reported in box 12 of your W-2 with code W).

 

If, however, you made the HSA contribution as a direct contribution (not through your employer), then the excess is NOT added to Other Income - rather, the HSA deduction on Line 12 of Schedule 1 (1040) is reduced by the amount of the excess.

 

The earnings for this excess returned in 2022 shouldn't have been reported on your 2021 tax return.

 

@pattimccollum 

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