TurboTax for Windows at one point flashed a message indicating that I owed something like a $432 penalty for excess contributions, which was likely due to my entry error rather than a genuine excess contribution (W-2 Box 12=$7,199.92, no HSA for spouse). I cannot see that penalty in my otherwise completed return and wish to be certain it is not being assessed. Can you please advise where this penalty would appear if in fact I was being assessed? Thank you.
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The 20% additional penalty, if applicable, will show up on line 17b of your 8889 and Schedule 2, line 8.
You are correct that you would not be assessed a penalty for your HSA contribution. The contribution limit is $7300 if under 55, and you had a Family HDHP Plan.
Click this link for more info on Excess HSA Contributions.
TurboTax indicated that your $7,199.92 HSA contribution was an excess contribution until you completed the HSA section to establish your eligibility to have made the contribution. Examine Schedule 2 line 8 to see that no penalty is present.
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