I made a pretty simple mistake in placing too much into my HSA this year. My husband has a family plan with our son and I have my own HSA through work. I come to realize that even though we have separate accounts and premiums, because we are married, we are limited to the $7200 threshold for the 2021 tax year, instead of $7200 for his plan and $3500 for mine. This is the first year we have overcontributed to our HSA's and we exceeded the limit by $2900. I decided to take the money from my individual plan account.
When I was filling out the forms to withdraw the excess amount, I noticed that option 1 is "Change tax year to: _____ (Contribution will count toward your yearly contribution maximum.)" The HSA company representative told me that I can in fact forward this to the next year. My question is how will this reflect in my taxes this year? Will the extra $2900 still show up as taxable income if I am forwarding it to my contribution limit for 2022? Currently, as I am doing my taxes on TurboTax, it comes up as taxable income because my initial plan was to withdraw the funds. Is there a specific form that would have to be filled out or do I have to get a corrected statement? Thank you so much for your help!
