We have an ongoing excess contribution to my wife's IRA that is being penalized. I traced the problem back to my 2020 filing - Form 8889. When comparing how Turbotax filled out the 2019 form vs 2020 form, I see a discrepancy. W2 input in both years was exactly the same in term of boxes and codes. The difference is that line 2 of form 8889 shows 0 in 2019 and for 2020 shows the entire amount the employer contributed.
The only other difference in the two years was that a high deductible insurance plan was maintained for 12 months in 2019 and only 8 months in 2020 (after which my spouse was on Medicare). The calculations seem to account for this in proration, but Turbotax has treated the entire contribution as excess and that is the basis for the ongoing tax penalty
