Why an excess contribution for HSA? $642 Payroll contribution posted Jan 2, 2025. $8300 W2 total incl Jan 2 contrib. Entered $0 for "contrib. not reported in W2 box 12".

[anna-astrom-dahlin]

Why is TT Premier Desktop for iOS stating there is an excess contribution for HSA? There was a $642 Payroll contribution posted Jan 2, 2025 but looking thru contribution history then the $8300 W2 total in box 12 includes the Jan 2 contribution of $642 so no excess. Entered $642 on line for "Contributions made in 2025 for tax year 2024". Also entered $0 for "contributions not reported in box 12 of your W-2", ie no over contribution. Why is TT Premier for iOS asking me to withdraw $642 excess contribution to not be taxed extra when did not exceed the maximum Family limit?

[MindyB]

Do not enter $642 on line for "Contributions made in 2025 for tax year 2024".  You are double-counting this, because it was already in Box 12 Code W.  That input is for when you make a "catch-up" type contribution on your own in 2025 and designate that it's for 2024.

[anna-astrom-dahlin]

Thank you for response.

I think there is an error in the TT instructions and formula since it instructions tells me to enter $642 if it was contributed between Jan and April but applies for 2024. The last row should be catching that it should not be counted by how its worded but its not. 

[BillM223]

If I understand you correctly, the code W amount for 2024 included the $642. The code W amount reports the amount that your employer sent to the HSA custodian for tax year 2024. It should not include amounts made in 2025 for 2024.

So you are saying that your employer made this contribution in 2024, yet when you were asked, "enter any contributions made in 2025 for 2024?", you answered $642, which had already been contributed.

It is unusual that an employer would make a contribution after the beginning of the year, yet include the contribution on the 2024 W-2. So the problem rests with your employer who added the $642 to code W and also told you that there was contribution for 2024 made in 2025, when their own paperwork says that it was made in 2024.

If your employer would have completed your W-2 correctly, this would not have been a problem.

[anna-astrom-dahlin]

This is the details I have been provided. 

W2 box 12code W: 8300.04 (From employer)

5498-SA Box 2: 7658.37 (Total contributions made in 2024. This form is from the HSA org)

5498-SA Box3: 641.67 (Total contributions made in 2024. This form is from the HSA org)

[BillM223]

So, if I understand you, the $642 that was contributed in January 2025 for 2024, was Included in the code W amount?

If so, then you should not have entered the $642 separately, because normally, any amount that is contributed in 2025 for 2024 is NOT included in the code W amount. That is why this question is asked.

But if the code W amount includes everything, then when you are asked about "Contributions made in 2025 for tax year 2024", just answer zero - the code W amount already took care of it.