topic Re: HSA Excess contribution error in Get your taxes done using TurboTax

HSA Excess contribution error

katerz14 — Wed, 29 Jan 2025 20:07:27 GMT

My husband has an HSA, I have an HSA we both have family HDHP. We have a total contribution of 8290. The allowed amount for 2024 was 8300 for family plan. This is the same info for 2023 but the amounts follow the allowed for 2023.

I have entered my W2 contributions and my 1099-HSA distributions. I used all distributions for medical expenses. Under my husband it asked "excess HSA contributions carrover from 2023 still in HSA account" ( we had no excess in 2023 so I put $0) I did the same with the questions it asked on me. I put we were both covered by a HDHP, family plan etc.

It states "who made excess HSA Contributions?" then says we 7716 more to our HSA then was allowed. We have not contributed more thn allowed. Is there an error with Turbo Tax??

Re: HSA Excess contribution error

MayaD — Wed, 29 Jan 2025 20:31:29 GMT

Make sure you didn't accidentally re-enter the amount already listed (from box 12 of your W-2) as this will incorrectly double your total contribution amount.

Other things to keep in mind:

The limit ($8,300 if you're under 55 at the end of 2024 and are covered by a family HDHP) is prorated depending on the number of months you were covered by an HDHP and had no additional health coverage.
If you were only covered by an HDHP for part of the year, your contribution limit may be lower than above limit.

Why am I showing an excess HSA contribution?

Re: HSA Excess contribution error

katerz14 — Wed, 29 Jan 2025 20:36:45 GMT

I entered the "contribution" from my W2 I then entered the distribution from the 1099-SA. We are both under 55 and were covered the entire year under an HDHP
It still says I am over

Re: HSA Excess contribution error

BillM223 — Thu, 30 Jan 2025 00:54:15 GMT

First, the 1099-SA has nothing to do with excess contributions, so ignore that.

You said, "I entered the "contribution" from my W2"

Are you saying that you entered the code W amount not only with the W-2 but also in the HSA interview?

The difference is $584, which is an odd number. You said that you made contributions of $8,290 and TurboTax reported an excess of $7,716.

OK, what contributions did you report and importantly, WHERE did you enter them?

Re: HSA Excess contribution error

katerz14 — Thu, 30 Jan 2025 01:14:54 GMT

ok, W2 for hubby says W-$2440.00 W2 for me says W-$5853.90 total=$8293.90
I entered these in the W2 portion under the W option.
My 1099-SA says distribution $6742.53 and my husband says $3246.56 total $9989.09
In the question for the HSA interview it says
Hubby: Inheret HSA (NO)
"lets enter HSA contributions. It automatically has the 2024 employer and payroll contributions amount $2440 (this is not something I can change) and below it says "box 12 of your W2"
a box below says Excess HSA contributions carry over from 2023 still in HSA....I put $0 because we didnt' ahve excess in 2023
Any contributions you personally made $0. Did employer tell you about other contributions (NO) Did he has medicare (NO), covered by HDHP in 2024 YES what type? I was covered by a family plan every month of the year.
Now lets work on mine.
All same info except on my it shows a different amount that was entered in the W-2
Then the last questions says "who made the excess HSA contribution You contributed $7716 more to your HSA's than you were allowed. From this amount you must allocate $4880 of excess contribution between you. Who should we treat as having the excess contributuion of $4880?

We didn't exceed so I am not sure what to do. Looking at 4880, that looks like $2440 twice....but that still doesn't make sense.

WHen i am at the part taht says Excess HSA contributions carryover from 2023 still in HSA it wants to auto fill for me $5282 but I deleted that and put $0.00 I even tried to let it auto fill and see what happens and it still says we are over $7716

Re: HSA Excess contribution error

BillM223 — Thu, 30 Jan 2025 01:24:44 GMT

Did you do your 2023 tax return with TurboTax? In that return, do you have a form 5329? If so, what is on line 48 of the 5329?

Re: HSA Excess contribution error

katerz14 — Thu, 30 Jan 2025 01:43:33 GMT

Total excess contributuion $0.00 from 2023 The line is blank, there is no amount

Re: HSA Excess contribution error

BillM223 — Thu, 30 Jan 2025 16:27:34 GMT

Thank you for that. Now I need to ask you a favor. Which version of TurboTax are you using? Online or CD/download?

I ask because I just created a test similar to yours, and I did not get the excess report that you got.

At the end of the HSA Interview, there is a summary page. Can you tell me various line on the summary, and what values are given for those lines? The screen will look like this:

Re: HSA Excess contribution error

katerz14 — Thu, 30 Jan 2025 19:16:30 GMT

I deleted it all and started the HSA part over but I did it in the "deductions" part of the system. At the end it actually had 1 more quesiton the other didnt. It asked the amoutns of access and I put
The only 2 that have numbers is
Total Distributions Him: 3247 Me: 6743
Tax Free Employer Contributions Him: 2440 Me: 5854
Then at the bottom Excess employee contributions withdrawn $0 $0 but that is because the last questions was excess amounts and I put $0

Re: HSA Excess contribution error

BillM223 — Thu, 30 Jan 2025 19:34:28 GMT

The link to the HSA interview is the same whether you enter through Income & Wages, or through Deductions & Credits. No, I don't know why there are two ways to enter the HSA interview.

The important thing is that you don't show any "Taxable earnings on excess contributions", which means that you don't have any excess contributions (at least, not from your employer).

Can you go back through the HSA interview and see if you end up with the same HSA Summary?

Re: HSA Excess contribution error

Shiftslayer — Thu, 30 Jan 2025 21:24:24 GMT

I'm in the exact same situation, High deductible all year, $2500 contributed, the 4th year I've done it, for some reason the software has an error which is saying I have a $0 contribution limit. It appears that this has happened in past years based on a search as well. I'm using a download version of the software, just updated. This appears to be a TurboTax issue, not an error on our end, I've very carefully walked through the process 3 times.

Re: HSA Excess contribution error

BillM223 — Thu, 30 Jan 2025 21:31:05 GMT

Shiftslayer, I will ask you the same question: can you tell me what is in your HSA Summary at the end of the HSA interview? See the sample HSA Summary above.

And what does "$2500 limit" refer to?

@Shiftslayer

Re: HSA Excess contribution error

katerz14 — Thu, 30 Jan 2025 22:28:45 GMT

Ya I'm using the software from Costco. It used to be a CD but this year it's download with a key code.

Re: HSA Excess contribution error

BillM223 — Thu, 30 Jan 2025 23:16:57 GMT

So, katerz14, you are OK now? No excess HSA contributions?

@katerz14

Re: HSA Excess contribution error

Shiftslayer — Fri, 31 Jan 2025 14:01:00 GMT

Yeah, same here, always catch it on sale.

Re: HSA Excess contribution error

Shiftslayer — Fri, 31 Jan 2025 14:05:47 GMT

By $2500 dollar limit, I mean I limit myself to $2500, that's all that goes in yearly as it's pre-set up by my employer to be taken out of my pay. I know I have a higher limit. There are no prior excess contributions, no rollovers, etc. nothing has changed year over year other than the reply by the software that my max contribution is $0, which I know to be incorrect. In fact, my limit should have increased as I had a child in 2024 and switched to a high deductible family plan.

Re: HSA Excess contribution error

BillM223 — Fri, 31 Jan 2025 16:55:00 GMT

"I have a $0 contribution limit."

Do you see this message in the screen where you enter your month-by-month HDHP coverage? Where there is a button that says "Calculate Max Contribution Limit"?

If so, yes, that calculation should be ignored. We have reported that in many cases, this calculation is incorrect. However, the fact that the screen gives this value in error, does not affect the accuracy of the numbers on the 8889 or 5239 or anywhere else on the return.

Re: HSA Excess contribution error

vahap — Sun, 16 Feb 2025 23:59:06 GMT

Whoever is having this error make sure to select the question if you had HDHP "YES" this will solve the issue.

Re: HSA Excess contribution error

daniels190 — Sat, 15 Mar 2025 23:43:16 GMT

That still does not fix the issue. I am using the desktop version and it is saying that I had excess contributions but I did not. It is saying my whole amount ($8293 for family plan) contributed was excess. Is this a standard bug? And how do I make sure I am not getting charged 6% on the "excess contribution" that is not actually in excess?

Re: HSA Excess contribution error

MarilynG1 — Sun, 16 Mar 2025 00:01:50 GMT

If you had a Family HDHP Plan and also an HSA Account, on the very first page of the HSA interview, make sure you checked the boxes indicating that.

Don't indicate that your wife had HDHP coverage or an HSA (she is covered under your family plan).

Since we can't see your return in this forum, we're focusing on common errors.

Because TurboTax is saying that your entire contribution is 'excess', somehow you are indicating that you're not eligible to contribute.

Here's more info on Excess HSA Contribution.

@daniels190