Did you take advantage of the last month rule in 2020? If you contributed more than you would otherwise be allowed to in 2020 and then did not have an HDHP for the entirety of 2021, your 2020 overcontribution will be taxed in 2021.
If that is not the case, check your entries and make sure everything is correct:
- Go to Federal > Wages & Income > Less Common Income > 1099-SA, HSA, MSA and click Start/Revisit.
- Make sure you have HSA selected for the spouse that has the HDHP. You don't need to select anything for the other spouse.
- If you made any withdrawals from your HSA, you should receive a 1099-SA and answer Yes to Did you use your HSA to pay for anything in 2021? Otherwise, select No.
- Assuming you did not inherit this HSA, select No.
- Under Let's enter your HSA contributions your employer amount should already be in there from the W-2. If you made any additional contributions, enter them here. However, if your employer made additional contributions not reported on your W-2, enter them on the next screen, Did your employer tell you about any other contributions?
- Answer the questions on the next two screens, making sure to select January through April family or solo coverage and then selecting None for May through December
- TurboTax asks about prior year over-funding. If you filed here last year, it should know if you used the last month rule to fund your HSA in 2020 and may be automatically adding that to your overcontribution amount this year.
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