- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
Thanks for the reply & clarification that failure to maintain HDHP coverage is NOT the same as excess contributions.
Are you saying that for TY 2020, the10% tax levied on the amount of the 2019 HSA contribution for those 11 months ($4125) I was not covered by an HSA is the ONLY tax, fee or penalty incurred?
Assuming I pay that 10% in 2020 and leave the total $4500 2019 contribution in my HSA, going forward, for TY 2021 and beyond, NO taxes or penalties associated with making that 2019 HSA contribution will accrue? The matter is truly closed?
If that's the case, why in TY 2020, does TurboTax (Form 5329, Line 49) indicate I ALSO owe 6% ($248) on that 11 month HSA deduction ($4125) I was not entitled to?
Is that 6% tax ONLY for TY 2020 or will that continue going forward?
Alternatively, is the TY 2020 ADDITIONAL 6% tax the result of an incorrect entry during the step by step interview? If so, I'm not sure where I made a wrong entry?
I truly appreciate your assistance! Thanks!