BillM223
Expert Alumni

Deductions & credits

Generally, if you had excess contributions in 2022 but withdrew them before the due date of the return, this has no effect on your 2023 return.

 

This is because if the excess contributions were "employer" contributions (i.e., either from your employer or from you through payroll deduction), when the excess if discovered by TurboTax, the excess is immediately added back to your income, in this case your 2022 income.

 

And because you withdrew the excess in a timely manner then there is no 6% excise tax on the carryover, since there was no carryover.

 

Now, some questions for you:

"Excess HSA contributions carryover from 2022 still in HSA account"

"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."

 

Where did you see these statements? They are not in the normal HA interview that you should have gone through.

 

Did you see the question, "What type of High Deductible Health Plan (HDHP) did [name] have on December 1, 2022?" What did you answer? Did the statements in italics above appear in the interview screens that followed?

 

 

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" 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."

 

When you saw the question, "Did you overfund your HSA in 2022?" because you withdrew the excess in a timely manner, you should answer NO to this question. TurboTax really wants to know if you carried over the excess (which you did not). So don't worry about the 5329 - your 2022 return did not have one.

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