HSA contributions 2021 TaxYear

[Confused331]

TurboTax 2021 keeps saying that I had an excess contribution of $2250 into my HSA, even though I have said that I have not made any contribution to my existing HSA.  It says I have to take the excess contribution out before April 18, 2022 or pay excess 6% tax.  I am currently on Medicare so I understand that I cannot make any contribution this year to an HSA. Any idea how to fix this problem?  Where can I get get rid of this fictitous enty of $2250 into my HSA.

[JamesG1]

At the HSA related screen Were You covered by a High Deductible Health Plan in 2021?, did you select No, I did not have coverage?

If so, that answer likely triggered the computation of the excess contribution.

[Mike9241]

even if you checked yes to being qualified to have an HSA, that $2250 was not generated automatically by Turbotax. that number came from somewhere. an amount you entered!  did you get wages in 2022? if so, does that w-2 have code W in box 12 with the $2250?  if so, your employer made the contribution and you have to withdraw it or pay the penalty. if you chose to withdraw, contact the Trustee so the proper documentation is prepared.  another possibility is that you had an excess in prior years that was not withdrawn or used. that to is subject to penalty.

[Confused331]

It turns out that I had put in $2250 into my HSA for 2020. I used the $ number that Turbotax calculated/recommended as the maximum allowable amount that I can add to my HSA in 2020 (part of the year on high deductible health plan and the rest on medicare).  So I am not sure why Turbotax  for 2021 taxes now wants me to take out the money from the HSA or I would owe a 6% tax.

[MarilynG1]

If the amount you contributed to your HSA in 2020 was not considered an excess contribution in 2020, did you withdraw it during 2021?

If so, you would have a 1099-SA to enter into TurboTax to indicate that.

If it was considered an Excess Contribution for 2020, you are assessed a penalty until you withdraw it.

One way to see this is on Form 8889, Part III, Smart Worksheet if you are using TurboTax Desktop.  

Since we can't see your return in this forum, try Deleting Form 8889 from your return and then go back through the HSA section again completely.   

Click this link for steps How to View and Delete Forms in TurboTax Online. 

Here's more info on HSA Excess Contributions  to help you.