Platform: TurboTax Home & Business for DESKTOP
Bkgrnd: My HSA was overfunded by about $100.
W-2 Box 12b accurately shows my contribution as $4700 (code W)
Turbo does not detect the overfunding in the W2 section.
I follow prompts and enter everything correctly in the HSA section.
Turbo sees the overfund am't & correctly tells me to withdraw the excess before the April deadline.
The amount I owe correctly increases because Turbo has entered this info into form 8889.
PROBLEM:
Turbo is not populating form 5329 which is mandated by the IRS. And even if I can figure out how to populate it myself, I will then be taxed AGAIN on the amount already being reported on 8889. IRS instructions specifically say:
"YOU MUST FILE FORM 5329 IF ....
The contributions for 2021 to your traditional IRAs, Roth IRAs, Coverdell ESAs, Archer MSAs, HSAs, or ABLE accounts exceed your maximum contribution limit"
What is the proper way to rectify this excess contribution?
I withdrew it (PLUS a little extra) in January of 2022.
BONUS QUESTION FOR THE BRAVE: Advice abounds on the internet saying my employer needs to revise Box 1 of my W2. But if they do, then Turbo will tax me yet again on my now higher amount.
