Just starting to look at 2020 taxes. TurboTax Deluxe 2020 is telling me that my $7,100 contribution to my HSA (Family enrolled in HDHP all year) is $100 too much. Anybody else seeing this?
It is an incomplete program and it will not be fully operational until sometime in January or February for some things like states. The program will undergo weekly updates as they complete sections ... this happens every year without exception.
ANY tax software released by any company prior to about January 15 is only released for marketing and market share. No program is complete and ready to file until the IRS approves their final forms and then individually reviews each program's implementation of the form. And some tax situations aren't able to be filed until February or March, again mostly due to IRS delays.
Now, it would be better if the updates that were easy to do were done in advance. But that may not fit the program workflow. For example, if the MAGI calculation is part of the module or subroutine for form 8606, the programmers may decide not to update any part of the 8606 subroutine until the actual form and instructions for 2020 are released by the IRS and then reprogram the entire module all at once.
Thanks for the replies. I guess I've never tried using a version this early in the (pre) tax season. Just wanted to make sure the development team was aware of what I thought was an error.
The contribution limit for a Health Savings Account for 2020 is $7100 for Family coverage and $3550 for Self coverage. The limits are increased for someone who is 55 years old or older as of December 31, 2020.
There are no known issues within TurboTax regarding the 2020 limits being applied incorrectly. If you are using the CD/downloaded version of TurboTax, please be sure you have updated the program to the latest version.
For more information see the following TurboTax articles:
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