2023 showing excess HSA contributions due to 2022 TT software error

[kbentleyz77]

2023 showed excess HSA contributions and when I researched it, 2022 shows an error. 2022 has form 8889 which is pulling from Form 5329 in 2021. I do not have Form 5329 from 2021, so 2022 was incorrectly reporting excess from 2021 that did not exist.

I called TT and they confirmed they have a software error that they are investigating. They said I need to wait until the investigation is complete. They provided a link and advised for me to sign up for updates. The link says 'solved' for the pending item under investigation. I questioned this and she said it was marked solved in error. They could not offer any suggestions and would not provide Tax Expert advise for free since this is their error. Since their software checks and reviews for mistakes, it seems they should have realized 2022 was inaccurately reporting a form from 2021 when reviewing 2022 before filing. However, 2023 is still incorrect. If they are aware of the issue, they should have advised us. More importantly, they should have fixed the error in their 2023 software. They said they are working night and day to resolve this... I doubt it.

[BillM223]

The 8889 and 5329 did not have a problem until earlier this month, there was no issue with excess HSA contributions until this year.

So my first thought is that you actually did have excess HSA contributions in 2022, or you made a mistaken entry that made TurboTax think that you had an excess (it's easier to do than you think).

Note that "2022 has form 8889 which is pulling from Form 5329 in 2021", the 8889 does not pull anything from form 5329. The carryover is handled on the 5329 itself. Also, note that current year (say, 2022) excess HSA contributions are reported on the 5329, not just carryovers, so you having a current year excess does not prove that you had a carryover from 2021.

We can wait until the current situation is resolved, but I don't think it will address your issue with 2021 and 2022.

[kbentleyz77]

No, I did not have excess contributions in 2021 or 2022. This is very frustrating because I was told by 2 phone reps yesterday and a rep online through Facebook messenger that there is an issue with 2022. However, you say that it just started this year. So, 1 out of 4 say it just started... but 3 say the error began in 2022. Who is correct? TurboTax is ridiculous.

[BillM223]

I am part of the team that reviews issues before they are (potentially) sent to Development. Had it been an issue in 2022, I would have seen it then.

I am somewhat concerned that your issue is not the same one that the phone people were talking about.

2023 showed excess HSA contributions and when I researched it, 2022 shows an error. 

What error are you referring to?

2022 has form 8889 which is pulling from Form 5329 in 2021.

As I noted above, form 8889 does not pull anything from form 5329. What line on the 8889 are you referring to?

I do not have Form 5329 from 2021, so 2022 was incorrectly reporting excess from 2021 that did not exist.

Where was your 2022 5329 reporting an excess? On what line?

[kbentleyz77]

what are you concerned about? please elaborate.

your statement "I am somewhat concerned that your issue is not the same one that the phone people were talking about" makes no sense.

[BillM223]

I am concerned that your issue is not the exact same issue that the phone people were talking about, so I would like to explore what your issue actually is. 

Please help me help you by answering my questions above.

[scotgret]

My tax forms have  the same error. Hopefully Intuit will fix this asap.

[DawnC]

We recommend revisiting the HSA entry screens to make sure the excess contribution wasn't due to an entry error.    

 

1. Open or continue your return.
2. Search for hsa and select Jump to hsa.
3. Answer the questions until you get to the Let's enter your HSA contributions screen.
4. Make sure you didn't accidentally re-enter the amount already listed (from box 12 of your W-2) as this will incorrectly double your total contribution amount.
5. Continue through the HSA screens, making sure you answered all questions correctly.
   • If you overfunded your HSA last year but withdrew the excess by the due date of your 2022 return, answer No to Did you overfund your HSA in 2022?

For 2023, the maximum combined total that you, your employer, and/or any other eligible person can contribute to your HSA account is:

• $3,850 if you're under 55 at the end of 2023 and are covered by an individual (self-only) HDHP;
• $7,750 if you're under 55 at the end of 2023 and are covered by a family HDHP;
• $4,850 if you're 55 or older at the end of 2023 and are covered by an individual (self-only) HDHP;
• $8,750 if you're 55 or older at the end of 2023 and are covered by a family HDHP.

If you overfunded or weren't eligible to contribute to your HSA in 2023, you'll need to withdraw the excess amount by April 15, 2024, to avoid a penalty (October 15 if you filed an extension).    Other considerations when showing excess HSA contributions.     @scotgret 

[scotgret]

Thank you Dawn.  That worked for me.