OK,
I deleted those forms, added back the W2, added the Uncommon $4000 income, did the HSA questionnaire and entered the -$4000.
The total Fed and State tax moved by the following:
Added $4000 W2 income, $1404 additional tax owed (makes sense as marginal tax at 35%)
Removed $4000 HSA contribution, $554 less tax owed.
Even with clearing out the HSA overcontribution ghost that was still shown the tax position is the same as before.
I guess I was still expecting lowering the HSA contribution would increase my taxes as I now have less of a deduction?
Thanks again.
Trevor.
