@kevinsu3841gmailcom wrote:
Hi, I have a HSA from my employer and a lower deducted plan from my wife's company, I got my w-2, it shows I have 2000 dollars contributed to the HSA account. It seems I'm not eligible for non tax hsa at this situation. Can I ask how to file my tax return at this situation using turbo tax? Thank you
If you are a covered person on your wife's plan, and your wife's plan is not HSA-eligible, then you are not eligible to make HSA contributions.
You must contact the HSA bank and ask for a "return of excess contribution". This is not a regular withdrawal and may require a special form. The bank will send you the money, and if there are any earnings from the money (bank interest or investment gains), the HSA bank must also send those to you. You must do this before April 18, 2022.
For 2021, when you file your tax return, you will be advised that you have an excess contribution. If you tell the program "I will remove the excess before the filing deadline" then the money will be added to your taxable wages and you will pay income tax on it.
Note that if you have a zero balance because you already withdrew the money for qualified medical expenses, you don't have to remove it again. The amount will still be added to your taxable wages, but there won't be an additional penalty.
If there were any earnings from the money, that will be reported as a withdrawal on a 1099-SA that you will get next year and that interest income will be taxable on your 2022 return.
