In 2022, I contributed the full amount ($3650) to my HSA but it turns out I was ineligible for the entire year. I realized this in May and did an excess contribution + earnings withdrawal ($3700). I then applied that money to my 2023 HSA, filed an amended return and paid the income tax due on the $3650.
In 2023, I had already been contributing to my HSA for 6 months ($1850) when I realized the above issue (I was eligible for all of 2023). Since I returned/applied my 2022 contributions + earnings to 2023, I've now overcontributed to 2023. Turbo Tax says I have an excess contribution of $1700, which I said I will remove by the filing deadline.
This all makes sense but the $1700 excess contribution isn't showing up in "other income", only the earnings from my 2022 withdrawal are there. My understanding is this year's excess contribution should be listed as income this year and the earnings will be listed as income next year, but that's not what's happening.
This is what is listed in Turbo Tax:
- HSA employer contributions - $1850 from box 12 W on my W-2
- HSA excess contribution withdrawal - $3700 (1099-SA)
- Contributions personally made not through your employer - $3700 (2022 excess returned/applied to 2023)
- Contributions you personally made but withdrew before April 15, 2024 – $1700 (2023 excess contributions)
I can't figure out what I've entered incorrectly.
