Thanks for the details. Here are my replies:
In recreating your scenario in TurboTax, say YES to the question 'did you pay for anything' so that you can enter the 1099-SA. Said "Yes" and entered the 1099-SA info.
You should have a Code 2 in Box 3 for 'Excess contributions'. Yep, there is Code 2 in Box 3.
Say YES your HSA contribution was made by your employer and deducted from wages on W-2. I did say "yes" even though only $1600 of the $2100 was made by husband's employer. The remaining $500 contribution was made directly to the HSA by husband (so it was not a payroll deduction). It doesn't seem like I can correctly answer "yes" or "no." Will this cause a problem?
On 'Type of HDHP Coverage' I indicated 'Family Plan' for January and February, and Medicare for other months (since Part B Medicare did not start until March 2021). That's what I did for husband's coverage.
I got max contribution of $1,200. So the difference between the $1,600 on the W-2 and $1,200 would be taxable income. In your case, the difference between $1,367 and $1,600. So in my case $233 is taxable income.
For 'did you overfund your HSA in 2020?' answer YES and enter the $500 excess contribution. I'm not understanding why I would answer "yes" to this question. Husband did not overfund his HSA in 2020. He withdrew the excess $500 before we filed our taxes. I checked our 2020 return and there is no form 5329. And the 2021 1099-SA gives the gross distribution as $2120, which is 1600 + 500 + 20 earnings. So it seems that I should answer "no" -- do you agree?
I will continue in TurboTax after getting the above questions resolved. Thanks!
