Hello,
I have an excess contribution in the amount of $1500 from 2019 that I am trying to take care of so that I do not continue getting penalized with the 6% excise tax. One such way to do this is to contribute less to the current tax year (2021) such that the excess of $1500 2021 HSA contributions = $3600, the HSA contribution limit for individuals in 2021. The issue is, I contributed the full $3600 at the start of 2021. However, I then took a distribution of excess contribution in the amount of $1500 from 2021. So, my total 2021 HSA contributions should be $3600-$1500=$2100. However, because the initial $3600 in contributions appears in box 12 of my employer W2, TurboTax is entering $0 for line 43 of form 5329, when it should be showing $1500 to take into account the distribution of $1500. Per tax form 5329 instructions (
https://www.irs.gov/pub/irs-pdf/i5329.pdf), line 43:
If contributions to your HSAs for 2021
(line 2 of Form 8889, Health Savings
Accounts (HSAs)) were less than your
contribution limit for HSAs, enter the
difference on line 43. Your contribution
limit for HSAs is the amount on line 12 of
Form 8889.
Any help on how to get the correct amount of $1500 to show up on line 43 is much appreciated!
