BillM223
Employee Tax Expert

Deductions & credits

@PutzRU

 

On the surface, it seems that you should not have had an excess contribution. Let's see if we can figure out what happened.

 

Based on the numbers you gave us, what you evidently did was to enter your contributions twice.

 

Your employer's contributions ($1,000) plus your contributions through payroll deduction ($6,125) can be found on your W-2 in box 12 with a code of W. In addition, on the "Let's Enter [name]'s HSA contributions" screen, you are asked about "personal" contributions. As it says on that screen, don't enter any part of the code W amount in line 2; instead, on line 2 you should enter only contributions you made directly to the HSA (not through your employer).

 

The code W amount was $7,125 - this appeared on the first line of that screen. When you entered the $6,125 on the second line, you doubled your contribution, for a total of $13,250.

 

When you apply your $8,000 annual HSA contribution limit, TurboTax thinks that $5,250 over the limit. 

 

Just go back to that "Let's enter [name]'s HSA contributions" screen in the HSA interview, and zero out that second line for personal contributions - the excess contribution message will go away.

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