whayle
Returning Member

State tax filing

Thanks for responding to my question.  I'm working with TurboTax 2023's screen entitled How Much Did H*** contribute to an HSA in 2022.  The first line under the heading asks for total contributions (Form 8889, line 2 + 9), with the note that it includes amounts contributed by the employer on behalf of H.  I entered that amount and the tax liability for 2023 was increased accordingly.  That amount was reported on the 2022 W-2 and included in 2022 income.  The second line asks for the excess contributions, line 47 of Form 5329; that form wasn't filed in 2022, but I had entered 0 because of the withdrawal; 0 was also entered in the the third line, Deduction Allocated to Spouse.   There wasn't any instruction to exclude what was taxed in 2022.  

 

Because H had an HSA in 2022 only in December and only for half of 2023, the end of year rule applies.  Accordingly, the excess which had been withdrawn is being included in income and therefore subject to tax to tax.  

 

What do you suggest?  Thanks again for your help.