My wife's employer opened an HSA in October 2019 (new job). I realized this in December preparing fo the taxes. We already have a family HSA which we contributed to personally thus this was not desired. She stopped all contribtutions to her HSA in December 2019.
In Feb 2020 we asked the custodian of my wife HSA to close her unused HSA account and do a excess contribution refund. Here is where it get strange:
The W2 shows a contribution of $140 but the account indicates an employee contribution of $330. We received $310 back and paid $20 fee to close. I am not sure what the difference is between the $330 and the $140. Interests were 1c.
The questions are:
1. Since the $140 are in the W2 but we requested a excess refund and got it back in February 2020, should we indicate she contributed the $140 in the W2 in the 2019 declaration or just omit the $140 deduction from the W2?
2. If we enter the $140 from the W2, should we declare the $310 excess contribution refund in the 2019 or 2020? If 2019, how in turbotax?
3. In regard to the difference between the $310 and the $140 in the W2, how should that difference be treated? Is there a split between 2019 and 2020 to declare the refund?
4. Are we supposed to get any form before April about the excess contribution refund?
