topic HSA Contribution for prior year and current year in same tax year - Turbo Tax thinks I have over funded, have I? Please help in Get your taxes done using TurboTax

HSA Contribution for prior year and current year in same tax year - Turbo Tax thinks I have over funded, have I? Please help

CubFantoo — Wed, 03 Mar 2021 12:59:39 GMT

I made an $8000 personal HSA contribution for 2019 in May of 2020 (the deadline for contributions had been extended due to the CARES act.) I also made an $8100 personal HSA contribution for 2020 in December 2020. When I go through the interview and report $16100 for HSA contributions during 2020, nothing comes up to let me indicate what year the contributions are for, and Turbo Tax thinks I have over funded my HSA. Have I? How do I resolve this? Can I report both contributions in the same tax year?

I am not on medicare and no longer have employer contributions. I am eligible to make the family contribution and the age catch up so the amounts are ok according to the IRS.

In the past, I have always made these contributions in the 1st part of the year for the prior year and then reported the contribution in the year it was paid - not the year it was for. For example the 2018 contribution was made in March 2019 and reported on my 2019 return. In 2020 I wanted to "catch up" and get the tax benefit of both contributions in the 2020 tax year. Is that not possible? Have I done this incorrectly and they have to be reported on the tax return for the year they are for not the year they are actually made?

If so, do I need to:

A. File corrected returns to fix this error on prior years and report the $8100 in 2020.

B. Leave the contributions as they are and report my $8100 for 2020 on my 2021return. If I do this does that mean I will end up not being able to contribute in the last year I'm eligible?

Looking for some help...

Re: HSA Contribution for prior year and current year in same tax year - Turbo Tax thinks I have o...

ErnieS0 — Wed, 03 Mar 2021 19:03:17 GMT

Enter $8,100 in TurboTax for 2020 contributions. It’s confusing, but TurboTax uses tax year. Then amend your 2019 tax return if you did not include the $8,000 as a deduction on that return.

If you filed your 2019 return with TurboTax, you can amend your 2019 return by downloading and installing our amend software on a computer. The software is free.

First download you (.tax file). Click on Find your tax data file (.tax file) in Windows for help in getting your (.tax file).

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Re: HSA Contribution for prior year and current year in same tax year - Turbo Tax thinks I have o...

CubFantoo — Fri, 08 Oct 2021 00:09:17 GMT

I have filed 2019 and shown the HSA contribution. My problem is that the HSA 5498-SA for 2020 indicates I made a $16,100 contribution. I did actually contribute 16,100 during the year; but, 8,000 was for 2019 (with my 2019 filing in May - tax deadline had been extended due to Covid considerations) and 8,100 was for 2020 made in December 2020. How do I rectify this?

Re: HSA Contribution for prior year and current year in same tax year - Turbo Tax thinks I have o...

Critter-3 — Fri, 08 Oct 2021 01:09:06 GMT

The 2020 form 5498 reports what WAS contributed during 2020 and not what tax year it was FOR and that is correct. Look at boxes 2 & 3 ...