My 23 year old daughter graduated from college in June of ’24, got a job in August and signed up for a high deductible health plan with her employer. She then elected to participate in an HSA and contributed $1,500 from Aug-Dec of last year. We’re doing her taxes In TurboTax Deluxe Desktop, and are getting errors about having excessive contributions since I am claiming her as a dependent on my own return. Is she not eligible to maintain and contribute to an HSA while she’s my dependent? If she can, does she have to pay taxes on the total amount contributed? How do I manage this in TT because at one point, the amount of her excess contributions doubled from what showed on her W-2, why was that? What is the correct way to handle this in the software as we seem to be stuck in an endless loop of checking and unchecking boxes that says she was covered by the plan for part of the year and no plan for the remaining months (she was on my health plan before she started work). Incidentally, she did have a small disbursement from her HSA account to pay for a medical related expense but the bulk of it is still there.
