Bill, one thing you said is incorrect. If the husband is covered by a family HDHP, and the wife has no other disqualifying coverage, then the wife is also deemed to be covered by a family HDHP. The wife is allowed to have an HSA and contribute to it, although the overall family limit still applies. In TurboTax, the taxpayer needs to indicate that the wife had family HDHP coverage for September, October, and November.
Once that is taken care of, it is clear that TurboTax is calculating the situation correctly. The taxpayer will have to return whatever overfunded amount as an excess contribution, but may then contribute to the wife’s account up to her annual limit, which will be something more than $3550 once the taxpayer checks that she was covered by an HDHP.
Anyway you slice it, the $8450 that was actually contributed will be an excess of some kind, but a little bit less of an excess than currently calculated.
