topic HSA Maximum Contribution 2019 in Deductions & credits

HSA Maximum Contribution 2019

DavidOz — Sat, 16 Nov 2019 15:53:00 GMT

I just started using TurboTax Premier 2019 for Windows. I believe the maximum HSA contribution is incorrect within TurboTax and using 2018's maximum. I have a HDHP Family plan and the maximum contribution is $7,000.00 for 2019. Being over 55, the additional catch-up is $1,000.00, for a total of $8,000.00. I entered that value into TurboTax Premier 2019 and it's telling me I have an excess contribution of $100. Do I have wrong information?

Re: HSA Maximum Contribution 2019

Anonymous — Sat, 16 Nov 2019 17:46:01 GMT

what you got was basically the 2018 version of the software with some items updated for 2018. the irs and states have not released forms and many updated rules for 2019. there will be multiple updates between now and the date the filing season opens in January. you'll have to be patient. filing early before the forms and program updates are installed caused many taxpayers grief last year in delayed refunds, bills instead of refunds, IRS and state correspondence. if you live in a state with personal income taxes you'll have to wait til they have updated its forms.

Re: HSA Maximum Contribution 2019

vwli — Tue, 26 Nov 2019 00:10:26 GMT

I ran into the same problem. HopefullyTurboTax team will update the software and reflect the corrected 2019 HSA contribution limit soon.

Re: HSA Maximum Contribution 2019

Critter — Tue, 26 Nov 2019 02:44:48 GMT

Patience is needed as the program is cobbled together ... the beta version put out early is NEVER complete and will need many many updates until it is fully operational in late January or Early February. The only reason the incomplete program is put out is because the public asks for it and is willing to pay for it and the DIY program companies are all just as happy to capture market share ... greed and impatience are to blame for this situation.

Re: HSA Maximum Contribution 2019

DoubleDeac — Thu, 06 Feb 2020 15:07:48 GMT

I have applied all the updates to the product and the HSA contribution limit is still incorrect. Is there a process that would need to be followed to force a recalculation when the fix is applied?

Re: HSA Maximum Contribution 2019

BillM223 — Thu, 06 Feb 2020 15:30:25 GMT

Please look at your 8889 and tell me what is on line 3. If you have Family HDHP coverage, it should be $7,000. The other $1,000 for being 55 or older is found on line 7.

The software has been updated on all platforms (and has been for quite a while).

I just want to make sure that the $100 excess contribution is due to a faulty contribution limit and not due to another, more likely problem.

Re: HSA Maximum Contribution 2019

bjv — Thu, 12 Mar 2020 01:25:28 GMT

I am seeing on the IRS website that the max HSA contribution for a married couple is $7,000, plus $1000 EACH if over 55, or $9000. Turbo tax caps at $8000. One of the two is incorrect. Anyone seeing this?

Re: HSA Maximum Contribution 2019

BillM223 — Thu, 12 Mar 2020 14:14:26 GMT

@bjv

The annual HSA contribution limit for 2019 is $7,000, plus a $1,000 if the owner of the HSA is 55 or over.

NOTE: HSAs are owned by the individual, not jointly (like IRAs). Therefore a single HSA cannot have $2,000 extra. Instead, the $1,000 is added to the limit of each person's HSA. Another way to say this is that while it is true that a family unit both 55+ can contribute a total of $9,000, at least $1,000 must go into each HSA.

This means that the maximum for each HSA in this context is $8,000. And since form 8889 is printed for each taxpayer, the $8,000 limit on form 8889 is correct.

Remember, there is no such thing as a joint HSA, nor a joint 8889.