I'll try to address each member's question(s):
@Opus 17 :
>1. On your 2024 return, do you have a penalty on form 5329?
I've searched my 2024 W-2, and there's no record of form 5329 (i used the document search tool and cannot find it). If it's any help, the value of $328 appears in a few places on my W-2: ("additional income from schedule 1, line 10" and "income from form 8889"
>2. When did you request the return of excess (before or After April 15, 2025)?
We filed an extension for 2024 taxes, and finally submitted them in August 2025. Again, I believed that I was confirming with turbotax how I wanted to handle my excess contribution from 2024, and told it to re-distribute the $328 into 2025 HSA contributions. I didn't think I was asking for a "return of excess". Am I misunderstanding your question? As a reminder, I never filled out any forms with my HSA, i.e. form for "distribution of excess HSA contribution form". I talked to my HSA recently, and their odd reply was this form was not necessary to fill out.
>3. Did the return of excess contain any interest or earnings? Was that interest or earnings reported as taxable income on your 2024 return?
I believe my response to Question 1 may pertain to this. But if of help, my wife's 1099-SA for 2025 shows box 1 "Gross distributions" shows $328.09, and box 2 "earnings on excess contributions" shows $0.09
@dmertz
>What happened is that you received a distribution of $328 as a return of the excess contribution and you deposited that $328 back into the HSA as a personal (not through your employer) 2025 contribution
Are we using different language but saying the same thing? Is this essentially taking the excess from 2024 and contributing it to 2025? I thought that's what I told turbotax to do, and you're suggesting that I did it correctly? (Again, odd that I'm finding a form from my HSA custodian that suggests I should have completed section "how would you like the excess funds distributed? check one... "option 1 - change tax year to:______ (contribution will count toward your yearly contribution maximum". I did NOT complete this form and let my HSA know.)
@BillM223
>No, you should answer "no" because (1) you don't even know if you had an excess in 2025
To clarify, I know I had an excess in 2024 that I'm trying to figure out. I do not believe, based on all documents from my HSA, that I have exceeded the max contribution limit for 2025.
>please tell me what is reported word for word on the HSA Summary when you say, "makes the $328 show as wages in turbotax under HSA".
I'm just referring to the summary page of my "wages and income", for my HSA entry, its saying income is $328. same summary page that lists all my other sources of income (my job, investments, etc.)
>So, please come back and let me know when (the date) you requested this withdrawal of excess HSA contributions, and we will work from here.
This seems to imply you believe I requested withdrawal of excess contributions (from TurboTax and/or my HSA custodian). I have done neither. Would the fact I do not have a form 5329 on my W-2 confirm this?
