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How do I change the HSA excess contribution? I included excess contributions from 2023, but TurboTax still includes the full contribution amount in their calculation.

I calculated my prior year excess contributions (~$2400), and I have been on a High Deductible HSA for all of 2024. However, TurboTax is claiming that I have excess contributions of almost $10K, which includes my total contribution limit in a tax year. I do not have these funds in my HSA, as I regularly withdraw for medical expenses throughout the year, so I do not have the option to withdraw the "excess funds". My only options to proceed in TurboTax are to withdraw as much as possible (a small amount will still be taxed 6%) or withdraw nothing and be taxed 6% of the assumed $10K.
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1 Reply
MarilynG1
Expert Alumni

How do I change the HSA excess contribution? I included excess contributions from 2023, but TurboTax still includes the full contribution amount in their calculation.

If your return shows Excess HSA Contributions incorrectly, the first thing to check is that you didn't enter your HSA Contributions in the HSA interview, if they were already reported on your W-2.  

 

The next thing to check is that you completed the HDHP section in the HSA interview.  If you're using TurboTax Online, clear your Cache and Cookies, then step through the HSA interview again.  This should resolve your error, since you didn't over-contribute and took regular HSA withdrawals for medical expenses. 

 

Here's more info on Excess HSA Contribution.

 

@ecastro782 

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