The short answer is, Thank you, that explains it!

The longer answer is some mistyping on my part. My HSA limit is $4,725--I just mistyped. I appreciate your trying to recreate my error with my wife's contribution limit. I think it should be 5/12 of ($3,550 +$1,000), or $1,896. (If you're interested, my error was copy and paste and calculating 7/12 of that $4,550. I believe that the $1,000 catch up has to be prorated through the year (although there is no net impact on us, as a couple). To your knowledge, is that correct?

I was wondering where the maximum contribution calculation on the page where I lay out that my wife was on a Family HDHP for 7 months and Self Only for 5 months came from. When I look at the correct numbers, that figure of $6,621 is the sum of my and her contribution limits. Some feedback for the Turbotax world is that locating that calculation on that page is confusing.

Thank you for your help

Joe

The catch-up is per individual who is age 55 or over, made to that individual's HSA.  Since both you and your wife are over age 55, each of you is eligible for a catch-up contribution to each one's own HSA:  5/12 of $1,000 to your HSA for your 5 months of HSA eligibility and an entire $1,000 of catch-up to your wife's HSA for her full-year eligibility.

$6,621 = 7/12 of $7,100 + 5/12 of $3,550 + $1,000 (rounded to the nearest dollar).  That would be your wife's maximum contribution if you didn't allocate any of the family limit to your contribution and you contributed to your HSA only your catch-up of 5/12 of $1,000.  $4,725 + $2,479 = $583 + $6,621

I think I am beginning to understand the calculations, but would you mind running through my scenario. It's basically the same thing but May 2020 is my Medicare start date.

My wife is also over 60, we were on the family HDP plan through April, then she went on individual HDP for the remainder of 2020.

I calculated 

Myself to be 4/12 * $4550 = about $1516.  (using 1/2 of $7100, plus $1000 for each of us)

My wife to be 12/12 * $4550 = $4550

But TurboTax is calculating maximum HSA contributions as:

Myself $2700 ( I'm assuming 4/12* $9100)

My wife at $5733 ( I this 8/12* $7100 +$1000?)

Can we make total contributions up to the TurboTax calculations amounts into our respective HSA accounts??

As I mentioned in my original reply, the amount that TurboTax displays as the maximum contribution for each spouse is calculated without regard to the other spouse's contributions and represents the individual limit, not the combined limit.  That means that TurboTax is calculating these as 4/12 * $8,100 = $2,700 for you and 4/12 * $8,100 + 8/12 * $4,550 = $5,733 by allocating the full $7,100 family limit to each of you separately.  However, once you divide the family limit as you chose to do, the result is as you calculated and is the maximum combined contribution.  Changing the allocation would change the amount each is eligible to contribute, but the combined limit will be the same, $6,066.  In other words, the combined limit is $6,606 but, regardless of how you split the family limit, you are not permitted to contribute more than $2,700 and your wife is not permitted to contribute more than $5,733.

I'd like to add a wrinkle to these questions about HSA contribution limits. My wife and I are both over 65, and we were covered under a family HDHP through April 30, 2020 by my former employer through COBRA.  I wasn't paying very close attention to that April 30 date, because I enrolled in Medicare on April 1 in connection with my 65th birthday on April 3.  My enrollment in Medicare made me ineligible to make HSA contributions after April 1.  Prior to that date I was the only one with an HSA and I made contributions to it on behalf of both of us.  My wife obtained her own HDHP as of May 1 and opened her own HSA.  The wrinkle in all of this is that even though I was covered by Medicare as of April 1, both my wife and I were still covered under my employer's HDHP until April 30.  My question is whether or not my wife's contribution to her HSA for April can be based on us both being in a family plan during April, or based only on her being a part of that plan during April.  The difference in our total contribution for the year is only $295.83 ($3,550/12) but I'd like to get it right.  Thanks very much.

[Edit:  Corrected to assume that you both are over age 55, not under.]

Since your wife was covered by a family plan on April 1, she can make a contribution for April based on the contribution limit for having family coverage.  Assuming that you made regular contributions to your HSA of $1,775 (plus $333.33 catch-up), her regular contribution for April is $591.67 and for each of the months after that is $295.83 .  Assuming that she remains eligible for the remainder of the year, her total contribution would be $2,958.33 (plus $1,000 of catch-up if she too was age 55 or over in 2020).

I'd like to expand on these questions about HSA contribution limits. My husband and I were both covered on his corporate "family' HDHP through December 31, 2021. He is still employed.  He became eligible for Medicare and enrolled effective December 1, 2021. His contributions through payroll to HSA were $4,150 which included $150 from his employer.   His enrollment in Medicare made him ineligible to make HSA contributions after December 1.  Prior to that date he was the only one with an HSA and made contributions to it on behalf of both of us.  I, the spouse, was not 65 and was covered under the HDHP for all of 2021. My question is that turbo tax is limiting our max HSA contribution to $3,367per Form 8889, line 13. I thought it would be $4,150 * 11/12 + $1,000 catch up. That is just for my husband. The Maximum Contribution worksheet in turbo tax is calculating at $7,517 which seems more in line with what we should be entitle to as a married couple, although I can't get to that number. TT is not allowing any contribution for me although I was eligible and on a family HDHP? It's not a lot but I don't want to trigger any IRS bounce back. Can you help?

The $3,367 on Line 13 of Form 8889 reflects the amount you could contribute out-of-pocket after the employer contribution of $4,150. Added together, you get the $7,517. 

Even though only $150 of the $4,150 was actually contributed by the employer, the entire amount is reported on your husband's W-2 as Code W because it was funded with pre-tax dollars. Whether it was an employer or employee contribution is irrelevant. 

Your husband could still contribute $3,367 to his HSA before hitting his max contribution for 2021. If you open an HSA in your name, you can still contribute to it, both in 2021 and going forward. This is assuming you are still covered by the family HDHP and not yet eligible for Medicare. You would have to enter that separately as your own contributions. 

@Cindy77

Thank you. So basically the entire amount contributed in 2021 is deductible and is already reflected in the Line 1 entry on W4. There should be no add back for  excess as there is none.  Is it necessary to go through the form 5329 and form 8889 data entry?

Yes, that is correct. You will not receive an additional deduction because the compensation on the W-2 already does not include the portion of the compensation that went to his HSA. 

Form 8889 does still need to be completed to record the contributions. Form 5329 is only if there is a penalty. You are not being penalized for an over-contribution to an HSA, so as long as there are no other penalties on your tax return related to IRAs or ESAs, you do not have to complete it.

@Cindy77 

So thankful for your support. Have a beautiful week!