Excess Conribtion on HSA

[azminngirl]

I receiving a message that states I may have an excess contribution of 4550 in my HSA.

1.  My balance was $0 on 12/31/2020

2.  Employer contribution thru payroll on W2 was 2700

3.  I took personal funds of 1850 and added to HSA $1850

4.  I did not enter the 2700, let it feed from the W2

5.  I entered the 1850 on the "Let's enter your HSA contributions" page

6.  I did not claim the $4550 worth of medical expenses since they came out of my HSA (as I thought I was not permitted to)

7.  I only entered any medical expenses above the $4550 that I paid with my Credit Card and not HSA

I have read the tips and cannot figure out how to correct.

Thank you

Linda

[BillM223]

What type of HDHP coverage did you have and for how many months?

Did you enter this in TurboTax in the HSA interview?

You are describing a situation where you entered all the contributions but never showed that you had HDHP coverage. This can happen if you leave the HSA interview too soon. Be sure to go all the way to the end when you get back to it.

"I did not claim the $4550 worth of medical expenses since they came out of my HSA " - what is this referring to? Schedule A?

OK, the excess contribution message has nothing to do with entries on Schedule A, it just means that you indicated more contributions than what you were allowed for the year.

So this brings us back to - 

What type of HDHP coverage did you have and for how many months?

Did you enter this in TurboTax in the HSA interview?

[Critter-3]

The HSA is handled in 3 parts in the TT program :

First the contribution:

https://ttlc.intuit.com/replies/4557768

https://ttlc.intuit.com/replies/4785646

Next the limitations screen to confirm you are eligible to make the contributions:

Until you complete the HSA portion of the TurboTax interview to establish your eligibility for an HSA contribution, TurboTax will treat the amount entered on the W-2 form as an excess HSA contribution.

https://ttlc.intuit.com/replies/4788059

And lastly any distribution:

https://ttlc.intuit.com/replies/4787864

[azminngirl]

Critter 3, I must be missing something because this didn't help me at all. 

I went to all the links you provided and those didn't help,  I had already read all of those before my posted question.

1.  I started at the beginning, Wage & Income and my W2 info was pulled in, which included the 2700 employer contribution thru payroll (pre-tax)

2.  My allowable max contribution if 4550, which is why I added 1850 on my own. (after tax ) which I will never do again.

3.  As of 12/31/20 my balance was $0, I used it all on medical.

So where specifically do I look or offset this so TT doesn't show I have an excess contribution?

Thank you

Linda

[azminngirl]

Thanks BillM223, that helped.  It was the HDHP piece I was missing!

Thank you! 

[Critter-3]

Back to step 2 ... excess contributions means you did not complete this step correctly.  What you had left in the account at the end of the year is immaterial at this point.  

Next the limitations screen to confirm you are eligible to make the contributions:

Until you complete the HSA portion of the TurboTax interview to establish your eligibility for an HSA contribution, TurboTax will treat the amount entered on the W-2 form as an excess HSA contribution.

https://ttlc.intuit.com/replies/4788059

[Mike9241]

were you 55 or older at year end? (if not the maximum contribution if you qualified was $3550). were you covered the full year by a qualified HDHP or on 12/1/2020? were you covered by medicare (no contribution is allowed for those months)? were you married and your spouse covered you under a non-HDHP - no contribution is allowed.