TurboTax cannot recognize HSA contribution when contribution is for previous year. It ignores or does not know how to treat contributions for previous years. It is limited to only the current year.
This does not reflect the current tax law via the IRS which allows contributions for the previous year OR the current year up to the tax deadline (typically Apr. 15). Ditto, my bank's 5498SA forms distinguishes between contributions I make for either the previous year OR the current year. Only TurboTax doesn’t recognize this.
The consequence is that, when I enter the contribution I made in 2021 for 2020, TurboTax treats the contribution as 2021 only. This results in a $2000 penalty for me since I did not have a HDHP (High Deductible Health Plan) in 2021; only in 2020. And TurboTax did the same thing to me last year.
How can I correct this oversight in TurboTax?
