In 2020, my new employer made an error, contributing to an HSA when I had declined the coverage. I discovered this after filing my 2020 taxes. I worked with the employer to get a revised W-2 and worked with the HSA bank to follow their procedures to recode these excess contributions to 2021 (I had no HSA in 2020, but then did have an HSA in 2021). I filed an amended 2020 tax return in September 2021, paid more taxes, and paid some fees. Everything is in Turbo Tax.
The question now for 2021 taxes. I have a 1099-SA with distribution code 2 (excess contributions, which match the work above). Turbo Tax asks me whether I overfunded my HSA in 2020. Per the above, I did and took all steps to correct that. However, if I answer "yes" I'm asked to "enter the amount from Line 48 on my 2020 Form 5329." I've triple checked, and I have no Form 5329 on either my original or amended 2020 tax return.
Am I supposed to answer "no," because it's OK there's no Form 5329, perhaps because I already handled everything with the actions above? Turbo Tax seems to accept this, but I don't know what the IRS expects.
Or am I supposed to answer "yes," and if that's the case, where would this number and/or form come from? A number from the 1099-SA, say, the contribution, including the earnings? Would the IRS consider that matching their info? I can't imagine I'm supposed to file a second amended return.
I'm not concerned about incremental taxes as the amounts are small. However, I want this correct with the IRS so I can stop having to follow up on my employer's mistake.
Thanks!
