What are my options? Turbotax premier HSA limit error 2015.

[admbcnu]

My last year return shows $5,000 in employer contributions reported in Box 12 of W-2, but states it was all employer contribution, then shows it as Gross Excess Employer Contribution and messes up 2016 taxes.  What are my options?

[BMcCalpin]

I can't tell - are you saying that 2015 had an excess contribution and it's carrying forward to 2016?

[admbcnu]

I believe so.  I didn't catch it last year, but it looks like it was input as though the employer contributed $5,000 and we contributed $5,000.  I found the 5329 line 47 with excess of $5,000 and, 8889 line 9 that states the employer contributed $5,000.  What actually happened was, we contributed $4,200 and the employer contributed $800.  This year I caught it stating that last year we over contributed.  So possibly we have to amend last year's taxes to correct last year's?

[Opus 17]

You have two problems.

First, you do need to amend your 2015 return.  contributions made by payroll deduction are captured from your W-2 in box 12 and should not be reported again later, you only report extra out of pocket contributions in the later interview.  The amending instructions are linked below.

Second, because your 2015 tax file is wrong, you can't use it as the basis for preparing your 2016 return, or you need to make certain manual overrides.  If you don't mind starting over from scratch, you would need to clear and start over, and then refuse the option to import your information from last year.

If you have a lot of things you would like to carry over besides the HSA, or you don't want to start over, then you will need to download your tax data file to your computer, purchase and install turbotax on your own computer from a CD or downloadable installer, and finish your return on your own computer.  You would then override the excess contribution calculation on the HSA form.  Since overrides block e-filing, you would have to print your return and mail it in.

Alternatively, if you amend first, that will require a copy of turbotax 2015 and a copy of your 2015 tax file to be installed on your local computer.  After filing the amended return, if you install turbotax 2016 on your computer and open the amended 2015 file, it should transfer your data including the correct HSA information without the need for an override.

Amend https://ttlc.intuit.com/replies/3288565

[TaxGuyBill]

If the 5329 is showing the entire $5000 as 'excess', I suspect that you may have missed answering the questions about having a High Deductible Health Plan and not having other health insurance (such as Medicare) or answered them in a way that disqualified you from the HSA contributions.

If that is the case, and you DID have a High Deductible Health Plan and no other health insurance, when you amend your tax return, it will result in a refund.
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[Opus 17]

Actually yes.  If employer contrition is $5000 that is correct because payroll contributions are counted as if they come from the employer.  If the excess is also $5000 then you probably did not double-enter your contribution but missed the qualifying questions.  

Either way, you need to amend 2015, and you can't transfer 2015 to start 2016 unless you fix 2015 first or are prepared to file an override.