Hi,
I am retiring in 2025 and will be applying to go on Medicare beginning of April. Unfortunately, Medicare has a 6-month look back, from the date of application, where you can not be contributing to an HSA. In 2024 my HSA contribution was the maximum, but based on Medicare's 6-month lookback, about 25% of this contribution will be subject to excise taxes as well as normal income taxes. I am trying to avoid this by requesting a return of my contribution before the tax filing date, which I have read would be a correction to my 2024 contributions and not subject to additional taxes and that I should report the returned amounts as other income on Schedule 1, line 8f.
I have been trying to make this happen in Turbotax Deluxe on form 8889 but have not been successful. How do I make this adjustment happen in Turbotax without having an excise tax calculated?
Note that It appears that this correction does not require a W2c, though my HSA will send a new 1099SA & 5498 form about in May, after I file my taxes.
Any help is appreciated.
