Sk98
You should not ask for a corrected W-2 unless the employer actually made a mistake. You don't mention that your employer did.
If indeed you made an excess contribution to your HSA, T...
See more...
Sk98
You should not ask for a corrected W-2 unless the employer actually made a mistake. You don't mention that your employer did.
If indeed you made an excess contribution to your HSA, TurboTax will take care of most of the details - please do NOT try to make entries on the forms yourself.
First, you will start the HSA interview (Deductions & Credits->Medical->1099-SA, MSA, HSA). During the interview, you will be asked to enter/confirm your HSA contributions (note that any contributions reported with a code of W in box 12 on your W-2 are already carried to this section and must not be entered again). You will be asked to enter the type of HDHP coverage and for which months you had it.
Then TurboTax will tell you if you had excess contributions. If your contributions were through your employer (the code W in box 12 on your W-2, whether from your employer or from you by means of payroll deduction), the excess will be automatically added back to Other Income (line 8f on Schedule 1 (1040)). TurboTax will give you the choice of withdrawing your excess (generally preferred if you have the cash) or carrying over the excess to 2025 to be applied as a "personal contribution" (line 2 form 8889).
If you reduce your 2025 contributions enough so that the carryover (if any) will fit under the 2025 contribution limit, then the carryover will be "used up" and done with. There will be no more penalties in this case.
If you tell TurboTax that you will withdraw the excess, you must do it before April 15th...unless you file an extension for the 1040 (form 4668), in which case both your return due date and your due date of the withdrawal date are extended until October 15th (of course, you can do either at any time before October 15th).
One more thing - you must tell your HSA custodian that you are requesting the "withdrawal of excess contributions" so that their paperwork will be correct and the 1099-SA that they send you will be correct. Normally, this 1099-SA is issued for the tax return for next year (your 2025 return, done in early 2026).
@Sk98