My wife and I are both over 55 and we have 2 HSA accounts. We fund the max contribution through my wife's work and is reported on her W2 ($8,300 for 2023 Tax Year). I have a sole proprietorship LLC and since we are both over 55, I can contribute an additional $1000 in my HSA.
My wife's contribution shows automatically as it is in her imported W2. When I go to my HSA, it is only allowing me to enter the 1099-SA for the funds I pulled from my HSA in 2023, but not enter the $1000 that is tax deductible and should increase my refund once entered. Using the Forms, I opened the 8889-T form for me and when I enter the $1000 I contributed in section 1. Box A, instead of INCREASING my refund, it DECREASED my refund as if the $1000 I contributed is not only NOT TAXDEDUCTABLE, but being taxed again (using funds I was already taxed on) and decreasing my 2023 Refund. Something is not right here. What am I doing wrong?
