When completing my taxes this year on TurboTax Desktop, I discovered that some of my HSA contributions in 2021 were subject to tax and a 10% penalty because I did not have HDHP coverage for all of 2021. I had an HDHP plan for 10 months, so the amount that I was allowed to contributed was reduced. My wife had an HDHP with an HSA for the entire year. TurboTax calculated the amounts allocated to each of us on our 8889 forms.
So, I believe I am stuck with this situation and will have to pay for the excess contribution in 2021.
My question, though, is related to the 2022 tax year. Once again, I was without an HDHP plan for 4 months, and I believe I will end up in the same position when I do my taxes next year. And, it will likely be worse since I didn't have coverage for 4 months instead of 2.
Is there any way I can fix this situation now before I file my 2022 tax return? I tried to manipulate some of the numbers in TurboTax to see what might happen if I remove 'excess' contributions, but I didn't feel comfortable with the results.
Thank you!
