If the $3,600 was the only contribution to your HSA and you had self-only coverage and a high deductible health plan (HDHP) the entire year, you should not be getting penalized for excess contributions. To verify that all your information is in the system correctly, please follow these steps:
- In the Federal section of your tax return, go to Deductions & Credits and scroll down to Medical and click Revisit/Start next to HSA, MSA Contributions.
- If you made any withdrawals from your HSA, you should receive a 1099-SA and answer Yes to Did you use your HSA to pay for anything in 2021? Otherwise select No.
- Assuming you did not inherit this HSA, select No.
- Under Let's enter your HSA contributions your employer amount should already be in there from the W-2. Unless you made additional contributions, leave Any contributions you personally made blank.
- Answer the questions on the next two screens, then make sure you answer the question related to your HDHP correctly on the next screen. If you had self-only coverage the entire year, you should not be penalized for excess contributions.
- Unless you overfunded your HSA in 2020 🙂 This answer is probably No.
Once that information is entered, you should no longer see the $500 overpayment.
@JDS250
