In 2023 my husband made an excess contribution to his HSA account, and we did not remove it timely.
We finally had the excess funds removed in April of 2025. The 20251099-SA has the correct code 2 in box 3. In the interview I check that he had overfunded his HSA last year, and put the amount of $2829 in the Excess Contribution question. However, form 5329 line 48 still shows there is an excess contribution and an additional tax. (We did pay taxes on the $2829 in 2023.) I have tried changing the answers to the interview but I can't get the 8889 and the 5329 to present the information correctly. Right now we have:
form 8889 line 2 = $2829; line 14 =$2830 ; line 14b = $2830; line 14c = 0
form 5329 line 42 = $2829 line 45 $0; line 46 $2829 ; line 48 $2829; line 49 $170
In the forms view for form 8889 I see a line in line 2 smart worksheet for "Excess HSA contributions withdrawn before April 15, 2025" but it is blank. I really just don't want the $2829 to carry over to next year on form 5329 and I want the forms to show we withdrew the excess. Can you advise what we need to do to get the forms to be correct?
Thank you in advance.
