HSA Contributions Incorrectly Shown as 100% Excess

yiawta1092 · ‎January 23, 2024

Our HSA contributions (max allowed) stated on the W-2, box 12, (W), are not being handled correctly by TurboTax. It is showing the full amount as excess and therefore additional income. The interview process didn't ask any questions about the amount to characterize it properly. What specific setting (form/wks line item) needs to be changed to correct this handling? I have temporarily fudged a subtraction amount in the wks to bring it down to 0 but I would like to see the correct setting be made. Thanks!

Opus 17 · ‎January 23, 2024

First, if you only made workplace contributions, they are automatically captured from your W-2. When you are asked later in the program if you made extra contributions, the answer is no. Don't enter the workplace deductions again.

Second, even workplace contributions are assumed to be taxable unless you certify that you were enrolled in a qualifying HDHP all year. This question normally comes up in the HSA interview on the deductions and credits page, and it might come up when entering your W-2 as well. But if you skip around you might miss it. Run the entire HSA interview on the Deductions page and make sure you indicate you had qualifying coverage.

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Opus 17 · ‎January 23, 2024

First, if you only made workplace contributions, they are automatically captured from your W-2. When you are asked later in the program if you made extra contributions, the answer is no. Don't enter the workplace deductions again.

Second, even workplace contributions are assumed to be taxable unless you certify that you were enrolled in a qualifying HDHP all year. This question normally comes up in the HSA interview on the deductions and credits page, and it might come up when entering your W-2 as well. But if you skip around you might miss it. Run the entire HSA interview on the Deductions page and make sure you indicate you had qualifying coverage.