topic HSA Excess Contribution Error in Deductions & credits

HSA Excess Contribution Error

Sezell0629 — Tue, 01 Feb 2022 03:31:57 GMT

I began a new job in 2021, my previous job did not have HSA and I have never had one previously. As of right now the total amount contributed to my HSA, including my employer contribution is $870. I am receiving a notification on TT that $790 (the number supplied in my W-2 in the 12-w box) is triggering an excess contribution. Understanding that contribution max is $3,600...What?

Re: HSA Excess Contribution Error

JillS56 — Tue, 01 Feb 2022 04:57:30 GMT

To correct excess contributions remove the excess amount (along with any earnings attributable to the excess contributions) before you file your personal income tax return or by April 18, 2022. By removing the excess contribution you do not have to report the excess contribution in your taxable income. To remove the excess contributions you will need to complete the HSA Distribution Request form.

Here is an article on Excess Contributions to HSA

Re: HSA Excess Contribution Error

Mike9241 — Tue, 01 Feb 2022 06:56:24 GMT

did you complete the 8889 section (HSA) of the return? if not then the code w amount would be an excess.

the other possibility is that you can be claimed as a dependent on another taxpayer's return. dependents don't qualify to have an HSA

not sure why there is an $80 difference

Re: HSA Excess Contribution Error

Sezell0629 — Tue, 01 Feb 2022 13:58:35 GMT

Hi, i read this article previously which is why I know I am significantly below the $3,600 if you're under 55 at the end of 2021 and are covered by an individual (self-only) HDHP limit. I am single and covered by an individual HDHP. Why is there excess, not what do i do if there is excess?

Re: HSA Excess Contribution Error

Sezell0629 — Tue, 01 Feb 2022 14:01:23 GMT

Hi, thank you this was helpful. I did not fill out the 8889, however, TT states they will automatically fill out Form 8889 if you and/or your employer contributed to an HSA (usually indicated by code W in box 12 of the W-2). I am not listed as a dependent on anyone else's taxes. Possibly my W-2 is messed up?

Re: HSA Excess Contribution Error

AnnetteB6 — Tue, 01 Feb 2022 14:24:15 GMT

It is unlikely to be a problem with your W-2 as long as the information is entered in box 12 with code W. The W-2 entry is just the first step in entering HSA information.

When you go through the HSA section of your return, you will need to indicate which months you were covered by the High Deductible Health Plan (HDHP) at your new employer. There is a last-month rule that will allow you to contribute the maximum amount to your HSA even though you may not have been covered all year. You may be seeing the message about an excess contribution because that section of your return is incomplete or something is not quite accurate.

Use the following steps to go directly to the HSA section and verify your entries:

On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
This opens a box where you can type in “hsa” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
The search results will give you an option to “Jump to hsa”
Click on the blue “Jump to hsa” link and enter your information

@Sezell0629