I'm having problems with form 1099-SA for my husband. Husband is 67, was working in Jan and Feb of 2021, and we had family HDHP. We knew that contributions to HSA are not allowed when you have Medicare. Anticipating retirement, husband quit payroll deductions to his HSA in 2020 because we knew his Medicare coverage would be retroactive for 6 months. He made one "catch-up" contribution directly to his HSA account. Husband retired in March 2021, started Medicare Part B in March 2021, and Medicare Part A was backdated to July 2020.
In January of 2021, husband's employer contributed $1600 to his HSA. Not wanting to have any contributions to his HSA, he withdrew the $1600 in February 2021 as an excess contribution. A few weeks later, while doing our 2020 tax return, I learned (from TT) that husband had a $500 excess contribution to his HSA, so he withdrew $500 in March 2021. His 2021 W-2 shows $1600 in box 12 with code W.
Husband recently received a 2021 1099-SA "distributions from an HSA" with a gross distribution of $2120 and earnings of $20. My problems begin as I try to answer the step-by-step questions for HSAs. TT asks "did you use your HSA to pay for anything in 2021?" I answer "no" so then TT never asks for the info from the 1099-SA. TT goes on to ask if husband had Medicare in 2021 and then says his maximum contribution limit is $1367. TT goes on to say husband has an excess HSA contribution of $233.
Question 1: how do I get husband's 1099-SA info into TT? And then see the $2140 as taxable income on our tax return?
Question 2: Why does TT say husband can contribute $1367 to an HSA in 2021, knowing his age and that Medicare is retroactive for 6 months, so that contributions would be penalized? The $1367 seems incorrect.
Thanks!
