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Thank you @DawnC 

My box 12c has code W and the amount is $3800. So it’s under all the limits you’ve mentioned. That’s good. 

next, on the HSA screen it seems like I need my 1099-SA to continue before seeing any amounts ?

 

not sure it was clear, but the penalty showed up right after I’ve added my W2. Which was the first step in my return. So I didn’t get to do anything else. That’s why it was odd that only from this low $3800 amount it seems to think it’s above limit.