How to handle HSA excess contribution for tax year 2024 when the withdrew for the excess occurred in January 2025

[kingcrumb]

Hello,

I over contributed my HSA contribution for tax year 2024. I submitted the Excess Contribution Removal form in January 2025.   The custodian has removed the overage but the 1099-SA will be reported on my 2025 return.  So should I report this when I do my taxes for tax year 2025?  If not then how do I enter this in Turbo Tax when there is no 1099-SA form for tax year 2024?

Thank you in advance.

[DavidD66]

It depends on whether the contribution was made through payroll deduction or if you made the contribution with after-tax funds.  If it was done pre-tax through payroll, your employer should issue you a corrected Form W-2 with the excess contribution included in your income.  If you don't get a corrected Form W-2 you should report the excess contribution as "other income" on your 2024 tax return.  If you made the contribution with after tax funds and there were no earnings associated with it, you don't need to report anything, as long as the excess was removed prior to filing your 2024 tax return.

If there were any attributable earnings distributed associated with the excess contribution, it has to be removed as well and reported as income for the year the distribution is received.