Since you had HDHP coverage on December 1st and no conflicting coverage on that date, you were considered covered by your HDHP policy, no matter what happened later in the month.
Was the $2,000 the amount of excess HSA contributions in 2023? If so, and if you did not withdraw it before April 15, 2024, then the excess was carried over to 2024, to be entered on line 2 on form 8889, where it will be applied to your 2024 contribution limit. Unfortunately since you no longer have HDHP coverage, it won't be used up in 2024, so it will keep carrying over and dinged a 6% penalty until you do one of two things:
- Get HDHP coverage with no conflicting coverage or
- Take a distribution for the $2,000 and tell TurboTax that it was not for qualified medical expenses.
Is this what you meant by "My turbo tax return states I am getting a credit for the amount that I contributed in 2023 of $2000"? If not, please tell me on what form and line this $2,000 appears.
I have done a lot of explaining based on what I am guessing happened, but I would really appreciate you coming back and confirming what I am guessing.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
