HSA Return of Excess Contributions Due to Social Security Signup (Medicare Part A)

vtrjs · ‎January 18, 2020

Hello,

I have an HSA provided through my employer benefits program. In mid July 2019 my wife and I signed-up for social security benefits (wife primary, me spousal benefits). The social security office advisor offered that we could claim back 6 mos (to Jan 1, 2019) for these social security benefits - which we elected to take. The downside relative to my HSA is that Medicare Part A started along with the Soc Sec benefits on Jan 1st. This in turn meant that all my HSA contributions from Jan - mid July 2019 needed to be " returned". I did a "return of excess contributions" for the total amount of my contributions + employer contributions + earnings on the excess contribution amount. The HSA is still active with contributions made in years prior to 2019.

In Turbotax desktop - how / where do indicate this scenario and essentially add the excess contributions to my taxable income for 2019?

dmertz · ‎January 18, 2020

Near the end of January you'll receive from the HSA custodian a code 2 Form 1099-SA that you'll need to enter into TurboTax in the HSA section. (Indicate that you used your HSA to pay for something during the year; this is TurboTax's way of asking if you obtained any distributions from the HSA.) TurboTax will include the taxable amount on Schedule 1 line 8, identifying it as coming from your HSA.

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vtrjs · ‎January 18, 2020

Thanks very much for prompt answer. I already have a 1099-SA for the normal medical related distributions. Per your guidance, I'll look for a 1099-SA code 2 that covers the excess contribution distribution.

HSA Return of Excess Contributions Due to Social Security Signup (Medicare Part A)

Deductions & credits

Deductions & credits