I'm using the Desktop version of TurboTax. Looking at the forms, I see the $1,987 entered on Schedule 1 Line 13 (and from there on Schedule 1 Line 26 and Form 1040 Line 10). Form 8889-T shows...
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I'm using the Desktop version of TurboTax. Looking at the forms, I see the $1,987 entered on Schedule 1 Line 13 (and from there on Schedule 1 Line 26 and Form 1040 Line 10). Form 8889-T shows the $1,987 on lines A and D of the "Line 2 Smart Worksheet" (lines B and C are blank); this was also entered on Line 2. The "Line 3 Smart Worksheet" has all the "Family" boxes checked, and shows that my maximum allowable contribution is $8,550; this amount is also entered in lines 3 and 5. The "Line 6 Smart Worksheet" has zeros for lines A-C and $8,550 for line D. The Line 8 total is $9,550. The "Line 9 Employer Contribution Smart Worksheet" shows my employer's contribution on lines A, C, and F; this amount is also entered on line 9. Line 12 is the difference between lines 8 and 11 (i.e. $9,550-$7,563=$1,987. The "Excess Employer Contributions and/or HSA Funding Distributions Smart Wksht" is blank. The HSA deduction on line 13 is $1,987. Finally, the "Line 18 Smart Worksheet" shows a total and net HSA contribution in 2024 of $9,300, and a zero amount allocated to spouse in 2024 (line C2). I did not make an excess contribution to my HSA in 2024, so I would not have had a carryover of $1,987 in 2025. The $1,987 I contributed in 2025 was just to bring my total contribution (including employer contribution) up to $9,550. Why is this being counted as a carryover? And why am I being penalized for it?