I am using TurboTax Deluxe version. My response to your comments are below in blue...
You may withdraw some or all of the excess contributions and avoid paying the excise tax on the amount withdrawn if you meet the following conditions.
- You withdraw the excess contributions by the due date, including extensions, of your tax return for the year the contributions were made.
- This was not the case for us as the money was contributed in 2016 and 2017 and withdrawn in 2018
- You withdraw any income earned on the withdrawn contributions and include the earnings in "Other income" on your tax return for the year you withdraw the contributions and earnings.
Under the Deductions & Credits section, you will come to a screen that says Did you overfund your HSA in 2017? (while amending your 2018 return). Answer Yes. You will be asked to enter the excess contribution information in the screens that follow.
- Under the Deductions & Credits section TurboTax asks "Who made the excess HSA contribution?" and I selected "Both of us"
- then asks "How much should we allocate to each of you?" and then entered the excess amount for each of us.
- there is a "Note: If you already withdrew your excess contribution you still need to include it here. We'll ask about withdrawn contributions next. Be sure to allocate the excess contribution to the person who has withdrawn the excess contribution." entered the amount that was withdrawn from each of our HSA.
- Hit "Continue" and the next page is "Enter Last Year's Excess Contribution. Enter the amount from line 48 on your 2017 Form 5329." Entered the amounts for my wife and I.
- Hit "Continue" and the next page is "You may want to withdraw money from your HSAs. It looks like you and your wife have an excess contribution of the amount entered on the prior page. These amounts are being taxed an extra 6%. But anything withdrawn between January 1 and April 15, 2019 avoid this additional tax."
- Then asks "What about the withdrawal I entered on my 1099-SA?" and has 3 options
- "OK, we will make/have made the full excess contribution withdraw by April 15, 2019"
- "We will make/have made some of the excess contribution withdraw by April 15, 2019"
- "No, we're not going to make this withdrawal"
- I have tried selecting the first option for full amount but when I return it shows that the second option was selected. If I select the second option it show the second option.
Still not seeing a way to remove the excess contributions from 2016 and 2017 so no longer taxed the 6% penalty even though these excess contributions were removed in 2018. How can these excess contributions be removed from my 2019 taxes so that we no longer have to pay the 6% penalty?
