A common error that usually results in excess contributions is if you, on the Let's enter your HSA contributions screen, accidentally duplicated the amounts already reported in the first line, contributions from Box 12 of your W-2.
Code W actually reports the combined contribution – yours plus your employer's. So if you contributed $1,500 to your HSA and your employer matched it dollar for dollar, Box 12 on your W-2 would show $3,000 with a code W.
If you duplicated the contribution in the Medical section, you should return and delete it there:
Look for the questions Were HSA contributions made in 2017? or Do you need to make any adjustments to your HSA contribution amount? When you answer Yes, TurboTax will open a screen where you can edit/delete your contribution.
If you're still getting the excess HSA contribution message, it's most likely because you're not eligible or you answered the eligibility questions incorrectly. To recap, the HSA eligibility requirements are:
- You must be enrolled in a high deductible health plan (HDHP).
- You can’t be enrolled in Medicare or another secondary health insurance policy.
- You can’t be claimed as a dependent on somebody else's return.
To review your answers, step through the HSA interview again. An easy way to get there is to search for "hsa" (lower case) in the search box, then click the "Jump to" link in the search results.
If you have additional questions or details regarding this, please feel free to post in the comments for further clarification.
