Hello,
I have the same issue. My HSA carryover from 2022 is $194. This is being applied to line 2 of Form 8889, even though I made this contribution via a cafeteria plan. Line 11 of my Form 8889 is $7469, Line 12 is $281, and Line 13 is $194. I contributed less than my allowed maximum contribution in order to cancel out my carryover from 2022. However, because TurboTax is putting the $194 carryover on Line 2 of Form 8889, then Line 43 of Form 5329 is $87, when it should be $0. This prohibits my under-contribution this past year from cancelling out my over-contribution carried over from 2022.
With the way Turbo Tax is processing this situation, my carryover is not being completely cancelled out like it should be. I end up paying additional tax and having a carryover to next year when the carryover from 2022 should have been resolved by the under-contribution in 2023. While I'm not a tax expert, I have read widely about resolving HSA over-contributions and spoken with a CPA (a friend). I think TurboTax needs to correct the way this situation is being handled, as it’s causing a lot of grief for myself and others-- everyone on this thread. Personally, I need TurboTax to assist with an amended return to correct this issue. The online version of TurboTax is not letting me correct it currently. Any help would be greatly appreciated.
Thanks,
Sarah
