BillM223
Expert Alumni

Deductions & credits

"HSA contributions in 2023 was $850 and 2024 in $115 in so far, well below contribution max for time frame. So while contributions were ineligible for 6 months due to FSA they still did not exceed max limit." - Correct

 

"For the HSA interview question when prompted looks like would still need to answer didn't have HDHP plan for full year and then make sure to mark for Jan-June as HDHP and July-Dec as Other. Turbo Tax prompted 8889-T to check boxes to confirm which months had what type of plan." - On the screen "Was [name] covered by a High Deductible Health Plan (HDHP) in 2023", answer, "I had different plan types at different times of the year." The next screen will ask you what type of coverage you had for each month of the year - Self, Family, or None. Answer None for those months with FSA overlap.

 

Then you will have to press Calculate Max Contribution Limit to get the max limit at the bottom of the screen, the n hit Continue to continue.

 

"But sounds like based on feedback shouldnt have to get refund from HSA custodian, Turbo Tax software wont mention have excess contributions and shouldn't 6 months after filing incur 6% excise tax penalty or another penalty from IRS cause didnt report as “Other Income” correctly." - If I understood you, correct. TurboTax will not calculate that you had an excess HSA contribution, so no excess will need to be withdrawn, and there will be not carryover to 2024, so no 6% penalty.

 

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