In 2019, the contribution limits are $3,500 and $7,000 respectively for self-only and family plans. Additionally, the contribution limits may be prorated on length of coverage in HSA-eligible plans. 

When you should see the question, “What type of High Deductible Health Plan did [spouse] have on December 1, 2019?”.  The choices are Family, Self only, or None. If you have been covered under your husband’s family plan, you might think you should answer Family to the question.  However, the answer should be None. 

It is referring to what type of plan you held in your name on December 1, 2019.  If you had your own separate HDHP on that date, then choose the type of plan that you had.  If instead you were covered under the plan in your husband’s name, then you should choose None.

The most common error I see when entering HSA contributions are double reporting. Typically, these payroll contributions are reported on your W-2 in box 12 with code W. If that is the case, no other contribution needs to be reported in the software.

Under the Deductions & Credits menu, confirm the following:

• Expand the menu for Medical
• Click Start/Revisit next to HSA, MSA Contributions
• Confirm the account ownership and click Continue
• Continue in through the screens until you reach Let's enter your HSA contributions
• Stop here. If all of your contributions were through payroll deductions and reported on your W2, do not enter anything on this screen. If that is the case, either leave the box empty or type $0 in the box next to Any contributions you personally made

If it turns out you did have an excess contribution, the following applies. Generally, you must pay a 6% excise tax on excess contributions. See Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. The excise tax applies to each tax year the excess contribution remains in the account.

You may withdraw some or all of the excess contributions and avoid paying the excise tax on the amount withdrawn if you meet the following conditions.

• You withdraw the excess contributions by the due date, including extensions, of your tax return for the year the contributions were made.
• You withdraw any income earned on the withdrawn contributions and include the earnings in "Other income" on your tax return for the year you withdraw the contributions and earnings.

Pub 969 Tax-Favored Health Plans

THIS IS GOOD INFORMATION BUT DOES NOT HELP MY SITUATION.

I AM FILING MARRIED FILING SEPARATELY. I AM TRYING TO ENTER MY HUSBANDS HSA AND IT WILL NOT LET ME. WE GOT MARRIED IN 2019. THIS IS THE FIRST YEAR FOR US FOR THIS. TURBO TAX IS NOT SAYING I HAVE EXCESS CONTRIBUTIONS, BECAUSE IT WILL NOT LET ME ENTER MY HUSBANDS HSA INFORMATION. I FEEL THAT NEEDS TO BE ENTERED SINCE I KNOW WE WENT OVER, BOTH OF US HAVING A HSA AND CONTRIBUTING MORE THAN $3500 EACH.

I HOPE THIS IS MORE INFORMATION TO HELP GET A FIX. 🙂

THANKS SO MUCH FOR REPLYING!! I APPRECIATE IT!!

I need to ask you several questions:

1. What was your HDHP coverage, Family or Self-only?

2. What was your spouse's HDHP coverage, Family or Self?

3. Do you each have an HSA, or just one of you?

4. What did your spouse contribute to his HSA? (include any employer contributions)

5. What did you contribute to your HSA? (include any employer contributions)

6. Are you trying to file married separate only to avoid the HSA excess contribution problem or for some other reason?

THANK YOU FOR REPLYING.

1 HDHP FAMILY FOR BOTH - WE EACH HAVE OUR OWN INSURANCE

2 SPOUSE HDHP COVERAGE FAMILY

3 BOTH HAVE AN HSA THAT WE FUNDED

4 SPOUSE $6121

5 ME $5425

6 FILING SEPARATE FOR ANOTHER REASON

THANK YOU AGAIN!

"3 BOTH HAVE AN HSA THAT WE FUNDED" - you mean that you each have an HSA (i.e., that there are two HSAs), right?

"

4 SPOUSE $6121

5 ME $5425

"

As I guess you now understand, you two share the $7,000 Family HSA contribution limit, so obviously, together you exceeded that - although if one of you took most of the limit, then one of you might not have excess. Of course, if you did that, then the other's excess would increase.

"I CANNOT GET TURBO TAX TO LET ME ENTER MY SPOUSES HSA INFO." - What do you mean by this? Is TurboTax not allowing you to check that your spouse has an HSA? On what screen do you have a problem?

Oh, one more question, are either of you 55 or over?

3 YES, WE BOTH HAVE AN HSA. WE JUST GOT MARRIED IN JUNE, SO HAD OUR HSA'S SET UP FOR OUR FAMILIES BEFORE WE MARRIED.

"I CANNOT GET TURBO TAX TO LET ME ENTER MY SPOUSES HSA INFO." - What do you mean by this? Is TurboTax not allowing you to check that your spouse has an HSA? On what screen do you have a problem? THERE HAS NOT BEEN A QUESTION ABOUT MY SPOUSES HSA, I HAVE GONE TO THE FORMS AND CANNOT FIND WHERE TO CHECK THAT MY SPOUSE HAS AN HSA???

WE ARE NOT OVER 55

Since you are filing separately, you only see the health savings account activity for the individual for whom the tax return is filed.  The other spouse information will not be available in that return.

However, together you must still abide by the family contribution limit.  See IRS publication 969, page 7.

"If either spouse has family HDHP coverage, both spouses are treated as having family HDHP coverage. If each spouse has family coverage under a separate plan, the contribution limit for 2019 is $7,000."

HOW DO I LET TURBO TAX/IRS KNOW THAT WE OVER CONTRIBUTED AND SHOULD HAVE THE PENALTY??

"HOW DO I LET TURBO TAX/IRS KNOW THAT WE OVER CONTRIBUTED AND SHOULD HAVE THE PENALTY??"

To be honest, I am not sure there is a way in the Step-by-Step process to do what you want. Like you, I cannot get the HSA interview to bring up the spouse's HSA in order to be able to enter this information.

Since you appear to be using the CD/download software (because you referred to Forms mode), I will experiment with doing overrides on the forms themselves.

We have found a way to do this if you have the CD/download software, but you probably won't be able to e-file.

If this is OK, then please do the following:

1. Open your return.

2. Figure out how much of the $7,000 Family limit you will allocate to each spouse. (this is up to you, but this is how we will force the excess contributions)

3. Go to Forms Mode (upper right) (CD/download only)

4. Go to form 8889-S

5. On line 1, check Family.

6. In the Line 3 Smart Worksheet, check Family for each of the 12 months.

7. Now go back to form 8889-T.

8. In the Line 6 Smart Worksheet, on line C, enter the amount of the $7,000 Family limit that you are allocating to your spouse.

9. This will reduce your limit by that amount, and if your contributions are higher, your excess will be reported on the line 12 Smart Worksheet in A and C. ***Note: this is true only if the HSA contributions were through your employer; otherwise, I think the amount in line 2 (your direct contributions) gets reduced by the excess and put in line 13.

Important notes:

1. This method introduces unidentified errors in the 8889-S. This may prevent you from e-filing (but I don't know if TurboTax will try to e-file the 8889-S on a MFS return anyway). If you can't e-file, you will have to print and mail the return yourself.

2. This method may void the Tax Accuracy warranty (most overrides do).  

3. I don't know what will happen if you go back through the HSA interview in Step-by-Step mode; it may undo or alter what you just did. This is an argument for doing the forms mode overrides last.

4. If you are using the Online product, none of this will work.