topic Can't Correct HSA Excess Contribution in Get your taxes done using TurboTax

Can't Correct HSA Excess Contribution

ph9000 — Tue, 25 Mar 2025 04:17:00 GMT

My employer accidentally contributed about $23 too much into my HSA in November 2024. I had the HSA custodian undo the excess contribution. TurboTax Home & Business will not let me note anywhere that the excess contribution was withdrawn. Instead, it tells me it is too late to withdraw the excess amount (in March 2025) instead of letting me note that I already withdrew the excess before the end of 2024.

Can TurboTax be updated to allow such an amendment?

I put in that I contributed negative $23 for my HSA contribution but TurboTax would not accept that, and keeps the total with the overpayment on Form 8889.

Re: Can't Correct HSA Excess Contribution

dmertz — Tue, 25 Mar 2025 13:01:32 GMT

What is the code in box 3 of the 2024 Form 1099-SA that you received for the HSA distribution that you received before the end of 2024?

Re: Can't Correct HSA Excess Contribution

ph9000 — Tue, 25 Mar 2025 15:45:44 GMT

The Distribution Code is 2. The 1099 shows that I withdrew the excess contribution, and that there were no earnings on it.

Re: Can't Correct HSA Excess Contribution

BillM223 — Tue, 25 Mar 2025 16:03:06 GMT

TurboTax DOES support your situation. You will go to the HSA interview (Deductions & Credits->Medical->1099-SA, MSA, HSA), enter your 1099-SA, tell TurboTax what your HDHP coverage for 2024 was, tell TurboTax if you made any additional contributions (the one through your employer were already reported on your W-2 in box 12 with a code of W), and let TurboTax tell you that you have an excess.

When TurboTax tells you that, you will have the option of telling TurboTax if you want withdraw all, some, or none. You, of course, will answer all IF the excess that TurboTax is showing is $23.

However, it often happens that what your return is showing is not what you think it is showing. For example, the excess (if any) may not be what you think it is.

So please try this, and when you find an issue, come back and tell us.

Re: Can't Correct HSA Excess Contribution

ph9000 — Wed, 26 Mar 2025 01:47:34 GMT

That did take care of it--thank you. Now my HSA (8889) form is filled out correctly. I let TurboTax "walk me through everything" but somehow it didn't bring me to that section. Also, I tried checking the radio button saying that I already withdrew the money, but it wouldn't accept that, saying I had waited to long to withdraw the excess without even asking when I withdrew the excess (it was last November, right after my employer deposited the excess).

Thanks again!