My wife has a HSA account - employer contributed $760 during the year; we used $633 of it for medical expenses; the end of the year balance was $126. Turbotax still shows as $760 overcontributed and this amount will be taxable as income and additional 6% will be applied as penalty for overcontribution. The SHA contribution amount of $760 comes from W-2 form, box 12c: it is marked as W and then amount $760 (per IRS HSA contributions to be reported in box 12 with letter W). How to overcome this issue in turbotax that treats a significantly lower that allowable HSA contribution amount as overcontribution? Income tax + 6% is tax applied. Please advise.
