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kdunc
New Member

Excess HSA contribution incorrect

I thought my employer had overfunded my HSA because they put in more than I requested based on my retirement mid-year. I asked for a distribution of the excess contribution. Now I find out, since I continued on a high deductible health plan, I was eligible for the contribution. I contacted the HSA and returned the distribution (after January 1), so I received a 1099-SA showing the distribution from the excess contribution in the amount of $235.73. I entered this 1099-SA into Turbo Tax and answered all the questions prompted. Since my HSA really wasn't overfunded, it is showing up as an error on my return. Form 8889-S Line 12 wks line B shows up with $236 but the employer excess deductions is 0. How do I fix this?

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1 Reply
BillM223
Expert Alumni

Excess HSA contribution incorrect

"since I continued on a high deductible health plan," - so you did not go on any form of Medicare?

 

What is the error on your return?

 

You should not ask for the withdrawal of excess HSA contributions if you didn't actually have any excess. It is difficult for taxpayers to calculate the annual HSA contribution limit so it's good to let TurboTax tell you what the excess is.

 

How did you get an amount into line 12B if you never had an excess?

 

Never mind, please do an HSA Reset to remove all HSA data from your return so you can start the HSA interview over from scratch.

 

HSA RESET

***Reset***

 

1. make a copy of your W-2(s) (if you don't have the paper copies)

2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen)

 

*** Desktop/Windows***

 

3. Go to the upper right and click on Forms, and 

4. Select the desired form(s) (1099-SA (if one), 8889-T, and 8889-S (if one)). Note the Delete Form button at the bottom of the form’s screen.


 

*** Desktop/Mac***


 

3. Switch to Forms Mode by selecting the Forms icon.

4. From the menu, select the form(s) (1099-SA (if one), 8889-T, and 8889-S (if one)) you want to remove (if you don't see it, select Open Form at the top). From the Forms menu, select Remove [form name].

 

*** Online ***

 

3. go to Tax Tools (on the left), and navigate to Tools->Delete a form 

4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)

 

5. go back and re-add your W-2(s), preferably adding them manually

6. go back and redo the entire HSA interview....

 

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