Deductions & credits

So on your 2020 return, you reported that you had Family coverage for 10 months, that you each had an HSA, and you contributed $6,500 to your HSA and $1,000 to your wife's HSA, you should have been assessed a penalty as follows:

2019 Family HSA contribution limit: $7,000

2019 "bonus" if the owner of an HSA is 55+: $1,000

Pro-rated Family limit: 10/12 * 7,000 = 5,833

Pro-rated "bonus amount: 10/12 * 1000 = 833

Max permitted to either HSA: $6,666

If max contributed to one HSA, then the max to the other HSA - $833.

I am sure that you immediately noticed that these add up to $7,499 - one dollar off from your total due to rounding error.

So if you entered the information above, then you should not have gotten a $1,333 penalty in 2020 for failure to maintain HDHP coverage. Is it possible that you did not indicate that you had 10 months of coverage for 2019 when you answered the failure to maintain HDHP coverage questions in 2020? And did you indicate Family coverage for both of you for all 10 of those months? Something must be amiss with your input.

As for 2020, your spouse had 6 months of Family coverage and you had 10 months of Family coverage, right?

2020 Family HSA contribution limit: $7,100

2020 "bonus" if the owner of an HSA is 55+: $1,000

Your spouse

Pro-rated Family limit: 6/12 * 7,100 = 3,550

Pro-rated "bonus amount: 6/12 * 1000 = 500

You

Pro-rated Family limit: 10/12 * 7,100 = 5,917

Pro-rated "bonus amount: 10/12 * 1000 = 833

But the Family limit is shared. So if your spouse uses the entire $3,550 that is allowed to her, you cannot use more than ($7,100-$3,550) $3,550, so your limit is 5,917-3,550, or 2,367.

If you want to use use more than 2,367 to your HSA, then you will need to decrease the amount used for your spouse's HSA, dollar for dollar.

Separately and in addition to the Family limit, you can each contribute your part of the "bonus", thus that's $500 for your spouse and $833 for you.

So how much have you two already contributed to the 2020 HSAs?