Hello, I wish someone might shed some light on this...
In my 2018 return it showed that my husband had an excess contribution of $2,225. I tried to figure out what I had done wrong but couldn't, so I filed the return. This was the total contribution to the HSA.
I had to pay taxes and a penalty on this. This year I filed my 2019 form and it showed that I had this excess contribution from 2018 in form 5329 but the bottom line did not change. My husband does not have an HSA anymore. Somehow now he's got an FSA and balance is 00. All used for medical expenses.
This has always bugged me, so I did a bit of research and sure enough I now find that if you don't answer some questions right, TurboTax did not input the $4,450 deduction in line 3 of form 8889. Therefore, the calculation is wrong and it assumes this is excess contribution and it is brought forward as other income to schedule 1.
I just did an amendment for 2018.
I tried amending 2019 and this contribution is still showing up in form 5329 because it's asking me how much we contributed in 2018?. I did change the excess contribution to 0 from 2018. As there is no change to bottom line I'm not sure if I should be amending or wait to see if IRS fixes this after working on my 2018 amendment?? Also, am I doing something weird that I'm being asked what the contribution was for 2018?
Thanks!!!
Thanks for any help.
