While doing my 2023 taxes I realized that I made an excess HSA contribution of $150 in April 2023 for the 2022 tax year. So for 2022 I contributed a total of $8450 vs the $8300 allowed. In March 2024, I requested and received an excess contribution refund of $150 from the HSA bank.
I am confused as how to report this on my 2023 return in the HSA section.
1. What do I input as a response to this question: Excess HSA contributions carryover from 2022 still in HSA account: Do I put $150 or $0. The funds were returned in early March 2024.
2. There is a note that says: Note: the amount here is carried over from your 2022 return, adjust or enter the actual remaining prior year excess contribution still in your HSA account. I am not sure how to decipher that.
After the note there are 2 boxes: Do I put my 2023 year contributions in the 1st box ($8750) and the 2022 excess contribution of $150 in the 2nd box?
Any contributions you personally made
(not through your employer) | |
| Any contributions you personally made but withdrew before April 15, 2024 |
3. Then when I get to section on “Did you overfund HSA in 2022”, it asks how much I reported on Form 5329, line 48 in 2022 Since I only just recently realized the 2022 excess contribution, I did not file Form 5329 with my 2022 tax return. Do I put 0 there or the $150.
bottom-line: Since I overfunded HSA for 2022 calendar year by $150, I believe I should be taxed on the $150 plus earnings that I received as a refund of the excess contribution in 2024, plus any penalty (6%). However, I won’t get the 5498s until after I file taxes. Help!
Or: Do i wait until 2025 when I file my 2024 taxes to report the return of the excess contribution as it was paid out in 2024? By then I’ll have the document from the HSA provider showing the return of the excess contribution.
