MR1982
New Member

HSA excess contribution double counted

In 2021 I accidentally made an excess contribution of $2017. In 2022 my HSA contribution (employer and payroll) was $7,096 (limit was 7,300, so $204 less than the limit). TurboTax computed 6% tax on $1,813 ($2,017-$204), which makes sense. 

this year (2023) my employer contribution was 7,300 (limit is 7,750 so $450 less). I would have assumed that this would reduce my excess contribution to $1,813-$450=$1,363 and I would pay 6% on this amount. 

however TurboTax calculates that my excess is $1,813 + $1,363 = $3,176 and it shows $1,813 as the amount on line 2 of form 8889 for 2023 (contributions to HSAin 2023).

 

am I missing something? I feel like I’m being double taxed??