A common error that usually results in excess contributions is if you, on the Let's enter your HSA contributions screen, accidentally duplicated the amounts already reported in the first line, contributions from Box 12 of your W-2.
If you're within the limits but you're getting the excess HSA contribution message, it's most likely because you're not eligible or you answered the eligibility questions incorrectly. To recap, the HSA eligibility requirements are:
- You must be enrolled in a high deductible health plan (HDHP).
- You can’t be enrolled in Medicare or another secondary health insurance policy.
- You can’t be claimed as a dependent on somebody else's return.
To review your answers, step through the HSA interview again. An easy way to get there is to search for hsa in the search box in the upper right, then select the Jump to link in the search results.
The HSA is handled in 3 parts in the TT program :
First the contribution:
https://ttlc.intuit.com/replies/4557768
https://ttlc.intuit.com/replies/4785646
Next the limitations screen to confirm you are eligible to make the contributions:
Until you complete the HSA portion of the TurboTax interview to establish your eligibility for an HSA contribution, TurboTax will treat the amount entered on the W-2 form as an excess HSA contribution.
https://ttlc.intuit.com/replies/4788059
And lastly any distribution:
https://ttlc.intuit.com/replies/4787864
