HSA contribution in 1040x was rejected

[lkljunky]

I made a contribution of $6,300 on April 15, 2025 to my HSA (this was my only contribution for tax year 2024).  Since I was not sure it would clear in time, I filed my taxes without the contribution.  After I filed and received the tax refund for tax year 2024, I did receive a Form 5498-SA from my HSA bank indicating that the contribution went through and was made in 2025 for tax year 2024.  So, I used Turbo Tax to file a 1040x.  I just received a notice from the IRS that states: "We can't allow your claim for Health Savings Accounts you file F8889 HSA Adding $6,300 while eliminating AGI in the 1040x for the same amount.  The computation does not match."  I double checked the forms that I exported from Turbo Tax and sent in for the correction, but I don't see any issues.  Can someone help me understand what the statement means?  I did not pay for the additional Turbo Tax services - can I pay for it now to help me appeal this?

[Mike9241]

we can't see the notice and don't understand the rejection. if you qualified, you had until 4/15/2025 to establish the account and make the contribution which you did. Did the notice give a reason for the rejection, if so, what was it.? Maybe this forum can help. If not, you're going to have to contact the IRS for their reasoning, 

Call 800-829-1040
1) Choose your language,
2) Then choose option 2
3) Then 1
4) Then 3
5) Then 2
6) When it asks you to enter your SSN or EIN do nothing – wait - - After it asks twice, you will get another menu
7) Then 2
😎 Then 3

It should then transfer you to an agent. Note when its phone line are busy you may be on hold for a long while or disconnected

[lkljunky]

Thank you for the quick response.  What I quoted was the reason for the rejection.  :(  That was the only thing written in the "Why we can't allow your claim" section of the letter.

[Opus 17]

Look at form 8889.  To allow a deduction of $6300, you would have to have family HDHP, and if you are under age 55, not have more than $2000 of other contributions (including payroll contributions from you or your employer).  The form 8889 for your amended return should have "family" checked on line 1, line 2 should be $6300 according to your story, line 3 should say $8300, and line 13 should say $6300.

Then, the amount from line 13 of form 8889 should be repeated on line 13 of schedule 1.  

Also, did you e-file your amended return with Turbotax?  If so, that should not allow a computation error.  If you prepared your return by hand and mailed your return, it's possible you made an error somewhere else on the form.  

[dmertz]

"We can't allow your claim for Health Savings Accounts you file F8889 HSA Adding $6,300 while eliminating AGI in the 1040x for the same amount.  The computation does not match."

That statement makes no sense.  Presumably you had family HDHP coverage, otherwise a $6,300 contribution would be in excess of what is permitted.  Since you used TurboTax to prepare the amendment, TurboTax would not have permitted you to report an excess personal contribution on Form 8889.  Assuming that a personal $6,300 HSA contribution was permitted, including this contribution should reduce AGI by $6,300.  Your amendment would have included Forms 8889, 1040-X and Schedule 1, and your explanation should have indicated that your originally filed tax return failed to include the personal HSA contribution made by the deadline.  If your amendment included these forms and the Schedule 1, it seems that someone at the IRS has made an error and you'll need to dispute this with the IRS.  Perhaps they incorrectly disallowed the HSA contribution for some reason.