Does the $6900 HSA contribution limit need to be split even between me and my spouse's HSA?

 

Deductions & credits

Forgot to add more details. So both me and my wife has HSA accounts. My health insurance covers my family. Her health insurance covers herself. In 2018, I contributed $3550 to my HSA and she contributed $3350 to her HSA. Thus, the total is $6900, which is the max limit. I thought we are good. But it seems TurboTax thinks I contributed $100 more to my account. Apparently, it is using the individual limit to measure my contribution, which is $3450. Is it a bug?
dmertz
Level 15

Deductions & credits

For any month that both spouses are HSA-eligible individuals and one of the spouses has family HDHP coverage, both spouses are treated as having family HSA coverage.  Since both of you were HSA-eligible for the entire year, indicate to TurboTax that each of you had family HDHP coverage the entire year.

Also be sure that you have allocated the HSA contributions and W-2s to the correct spouses.  The result that you got from TurboTax might be because you did not report yourself as having family coverage or reported the $3,550 contribution as your spouse's contribution.

View solution in original post

Deductions & credits

Similar question:  Both my wife and I have HD plans and are HSA qualified through our employers.  She covers herself under an individual plan and in 2019 plans to put $3500 in her HSA.  I cover myself and all of our children and have a family HD plan and plan to put $7000 in my account.  Now for 2020 our HR rep is telling me that the total for both of our HSA's can not exceed $7100.  Are we putting too much money in our accounts for 2019?

Deductions & credits

@gaedymw  In your case, the maximum total of contribution is the family amount ($7000 for 2019). Because one spouse carries family HDHP and the other spouse carries self only HDHP, you are not permitted to increase the allowed total beyond the family maximum. You and your spouse can make contributions to either or both HSAs, not to exceed the family maximum. 

Deductions & credits

A LOT of the program is not functional yet mostly due to the IRS not being ready ... they have not yet issued all of the  final forms or instructions so much of the program is still using 2018 figures like in the HSA section.

 

 These first releases of the program are usually very buggy and will require MANY updates before it becomes fully functional which usually will not happen until late January or sometime in February depending on the forms you need.  So patience will be needed as the IRS has not even announced when the 2020 filing season will start yet.  And since most of the state's piggy back on the federal return they are also scrambling to catch up with all the changes.  Buckle up it's going to be a very bumpy ride yet again ;-).

 

This  past tax year, the 1040 form was redesigned again and the 6 schedules were reduced to 3 AND  a new 1040SR ( for seniors) was added …these changes will most likely delay things somewhat …  so the smart money is on the patient person who waits to file until most of the bugs have been worked out.  Last time this happened many of the early filers had their returns lost or delayed for months so don't be in a hurry to jump off that cliff.

 

The tax programs this year have had to be reworked (again like last year) by every tax software company due to the changes above since it is not just as simple as " adding a form or worksheet " since many of the forms interwork with each other ... lots of moving parts to coordinate.   And before they can get final approval they need to be tested and approved by the IRS who themselves are not up to speed yet ... this is an impossible situation that will require patience on all fronts. Even my professional program has indicated that they will be delayed in getting out the first version this year and I appreciate them waiting until they have a working product when it is pushed out.



When will my forms be ready?

Historically, IRS tax forms start becoming available in January, with a few stragglers (most notably Form 1040X) getting finalized in February.

State tax forms can become available for filing any time between December and late February, depending on the state and the tax form.

For specific forms and dates, refer to the Forms Availability Table for your TurboTax product, see the related information below.

 

Can I Still Work On My Return Before My Forms are Ready?

Yes, according to the following:

Federal Taxes
You can still work on your return and finish most of it. Once your forms become available, we’ll create the forms and include all of your info.

You’ll only be able to e-file or print your return once the forms are available.

While you’re working on your return, we’ll ask if you want to receive email updates when your forms become available.

State Taxes 
If your forms aren’t available, you’ll get a message asking you to return once they become available.

While you’re working on your return, you’ll have a chance to let us know you want to receive email updates when your forms become available.

Related Information:

           IRS Forms Availability Table for TurboTax Individual (Personal) Tax Products

 

Click on the REVIEW tab and the program will tell you what in your return is still NOT ready and the estimated date it will be (subject to change of course ) ... you can put in for an email alert when they are ready ....

Deductions & credits

A LOT of the program is not functional yet mostly due to the IRS not being ready ... they have not yet issued all of the  final forms or instructions so much of the program is still using 2018 figures like in the HSA section.

 

 These first releases of the program are usually very buggy and will require MANY updates before it becomes fully functional which usually will not happen until late January or sometime in February depending on the forms you need.  So patience will be needed as the IRS has not even announced when the 2020 filing season will start yet.  And since most of the state's piggy back on the federal return they are also scrambling to catch up with all the changes.  Buckle up it's going to be a very bumpy ride yet again ;-).

 

This  past tax year, the 1040 form was redesigned again and the 6 schedules were reduced to 3 AND  a new 1040SR ( for seniors) was added …these changes will most likely delay things somewhat …  so the smart money is on the patient person who waits to file until most of the bugs have been worked out.  Last time this happened many of the early filers had their returns lost or delayed for months so don't be in a hurry to jump off that cliff.

 

The tax programs this year have had to be reworked (again like last year) by every tax software company due to the changes above since it is not just as simple as " adding a form or worksheet " since many of the forms interwork with each other ... lots of moving parts to coordinate.   And before they can get final approval they need to be tested and approved by the IRS who themselves are not up to speed yet ... this is an impossible situation that will require patience on all fronts. Even my professional program has indicated that they will be delayed in getting out the first version this year and I appreciate them waiting until they have a working product when it is pushed out.



When will my forms be ready?

Historically, IRS tax forms start becoming available in January, with a few stragglers (most notably Form 1040X) getting finalized in February.

State tax forms can become available for filing any time between December and late February, depending on the state and the tax form.

For specific forms and dates, refer to the Forms Availability Table for your TurboTax product, see the related information below.

 

Can I Still Work On My Return Before My Forms are Ready?

Yes, according to the following:

Federal Taxes
You can still work on your return and finish most of it. Once your forms become available, we’ll create the forms and include all of your info.

You’ll only be able to e-file or print your return once the forms are available.

While you’re working on your return, we’ll ask if you want to receive email updates when your forms become available.

State Taxes 
If your forms aren’t available, you’ll get a message asking you to return once they become available.

While you’re working on your return, you’ll have a chance to let us know you want to receive email updates when your forms become available.

Related Information:

           IRS Forms Availability Table for TurboTax Individual (Personal) Tax Products

 

Click on the REVIEW tab and the program will tell you what in your return is still NOT ready and the estimated date it will be (subject to change of course ) ... you can put in for an email alert when they are ready ....

Deductions & credits

So we are on the path to have a total of 10K with only one month left, how do we correct?   Will they let us roll into 2020?

Deductions & credits

@gaedymw   You will not be able to "roll" to 2020. Stop payroll deductions now. You will have to decide how you want the maximum of $7000 contribution divided between your HSAs. For example, $5000/$2000. Contact the HSA administrator(s) and explain that you have excess contribution(s). Request a return of excess 2019 contribution(s). They should have a process to do this.