I entered $1800 for HSA amount appearing on my W-2 Box 12cW. Turbo Tax displayed warning that it would be an over-contribution, and I will be penalized?? Single filer. I understand HSA max to be over $4300(?)
What should be done? My taxable amount to Fed is impacted by entry as well, so I want to get this right (not overpay!). Turbo Tax just made simple difficult on this clear "enter whats in the box" by producing an error message it is excess. How is $1800 employer and employee HSA contrib total excess??
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Turbotax reports it as an excess until you complete form 8889. which is in the medical expense section
12w carries to line 9 of the form and should not be duplicated on line 2. that line is only for contributions made directly - not through your employer.
@opsreilly4 not sure I follow you post, but this is the common error that is made:
you entered your W-2; part of that data entry is Box 12 / Code W which is the HSA contribution. That is all fine.
You may find a question along the way that asks how much you contributed DIRECTLY to your HSA. DO NOT include the money that was on the W-2!!! What they are asking is did you send money directly to the HSA outside of your paycheck.
If the HSA contributions are on your W-2, you don't also enter them separately, unless you made separate direct contributions (and then, only list the separate direct contributions.) Your contributions exceed the limit because they are being counted twice.
Have you gone through the HSA questions (I think they are WAY later in the program after you enter your W-2) to indicate that you have a qualifying High Deductible Health Plan (and no other insurance) that qualifies for an HSA? Until you do that, the program treats it as an excess contribution because it thinks you don't qualify for it.
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