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You may withdraw some or all of the excess contributions and avoid paying the excise tax on the amount withdrawn if you meet the following conditions.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- You withdraw any income earned on the withdrawn contributions and include the earnings in "Other income" on your tax return for the year you withdraw the contributions and earnings.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
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