topic When I input that I had a self only High Ded Health Plan along with my Hearth Savings account in Deductions it drops my refund? in Deductions & credits

When I input that I had a self only High Ded Health Plan along with my Hearth Savings account in Deductions it drops my refund?

erik-p-johnson — Thu, 16 Apr 2020 01:20:50 GMT

Re: When I input that I had a self only High Ded Health Plan along with my Hearth Savings account...

ThomasM125 — Thu, 16 Apr 2020 20:53:50 GMT

That might be because you over-funded the plan. You are only allowed to contribute $3,500 per year ($4,500 if over 55) to an single HSA plan. If you contribute more, you are subject to a penalty. You could withdraw the excess contribution by the due date of your tax return to avoid the penalty however.

Re: When I input that I had a self only High Ded Health Plan along with my Hearth Savings account...

erik-p-johnson — Sat, 25 Apr 2020 21:52:14 GMT

Sorry for the delay Thomas, I had not seen that you answered the question. I don't think that is it. I put less than $3000 into the account last year.

Re: When I input that I had a self only High Ded Health Plan along with my Hearth Savings account...

VictoriaD75 — Mon, 27 Apr 2020 17:30:05 GMT

Double check your entries. It is possible you entered the HSA contribution more than once, and it is considered an excess contribution.

The most common error I see when entering HSA contributions are double reporting. Typically, these payroll contributions are reported on your W-2 in box 12 with code W. If that is the case, no other contribution needs to be reported in the software.

Under the Deductions & Credits menu, confirm the following:

Expand the menu for Medical
Click Start/Revisit next to HSA, MSA Contributions
Confirm the account ownership and click Continue
Continue in through the screens until you reach Let's enter your HSA contributions
Stop here. If all of your contributions were through payroll deductions and reported on your W2, do not enter anything on this screen. If that is the case, either leave the box empty or type $0 in the box next to Any contributions you personally made

Also, verify that you indicated that you participated in an HDHP. If not, the contribution will be "disallowed" and taxable as an excess contribution.

Re: When I input that I had a self only High Ded Health Plan along with my Hearth Savings account...

erik-p-johnson — Tue, 28 Apr 2020 01:25:55 GMT

Thank you GloriaD75. That is what I did. I went in and tried again and still no luck. When I originally entered the information it dropped my refund when I got to the point where I marked that I DID participate in a HDHP all year, that is what I thought was so odd.

As an experiment I just made the selection for "no, I did not have coverage" and the refund shot back up. I must still be doing something wrong.

Re: When I input that I had a self only High Ded Health Plan along with my Hearth Savings account...

AnnetteB6 — Wed, 29 Apr 2020 20:18:50 GMT

This may be a silly question, but are you sure you are seeing a change in a refund and not a change in a balance due? The situation you described is opposite of what would normally be expected.

@erik-p-johnson

Re: When I input that I had a self only High Ded Health Plan along with my Hearth Savings account...

erik-p-johnson — Thu, 30 Apr 2020 00:24:37 GMT

Ha! Problem solved. You are 100% right, I was not paying close enough attention. I reduced what I owe. Happy for that :-). Thank you so much for your help!