Two Part Question... Scenario... overpaid HSA (employer contribution on W2) in 2019 by $2,500; Turbotax led me to include it as additional income on 1040 for 2019 AND to request the bank to distribute the amount in early 2020.
- Is there any obligation or method to pay the Social Security and Medicare tax that wasn't paid through my payroll checks on that excess $2,500?
- I now have a 1099 SA for 2020 with $2,500.47 in box 1, $ .47 in box 2 (earnings on excess contribution) and Code 2 in box 3. (All logical). Navigating the following questions - anyone have any different thoughts?
- "Tell us if your excess HSA/MSA contribution was made by your employer and deducted from the wages in Box 1 of your W2." I'm answering "NO", since the $2,500 isn't part of the 2020 W2 math. Sound right?
- "Did you overfund your HSA in 2019?" I am answering "NO" since I put the excess back into taxable income for the 2019 return AND withdrew it by the due date of 7/15/2020. I'm always uncomfortable just blowing past questions because I think I know the answer.... Anyone have a thought? Agree with my "NO"?
Thanks!!
