Hello,
My Form 5498-SA and Box 12 on my W-2 both say I contributed $5,799.84 to my HSA with HealthEquity. I confirmed this with HealthEquity. My understanding is that I could contribute up to $7,000 for my wife and I. Yet TurboTax is telling my I over-contributed by $3,600. I don't understand this at all. Any help would be GREATLY appreciated!
Thanks,
Rich Hanley
What you did is this:
1. Your employer contributed $5,800 (rounded up). This is code W in box 12 on your W-2.
2. Then you entered this same amount as a personal contribution on the "Let's enter [name]' HSA contributions" on the second line, where it tells you not to enter anything contributed through your employer.
3. This makes an apparent total of $11,600 in contributions.
4. You are evidently 55 or over, so your actual HSA contribution limit is $8,000 for Family coverage.
5. $11,600 minus $8,000 is $3,600, which is the amount that TurboTax reported as the excess.
Please go back to the "Let's enter [name]'s HSA contributions" screen and enter 0 (zero) on the second line, where it says "personal" contributions - this is ONLY for amounts you sent direct to the HSA custodian, not through your employer.
Did you have a FAMILY HDHP and did you indicate so in the program ?
The HSA is handled in 3 parts in the TT program :
First the contribution:
https://ttlc.intuit.com/replies/4557768
https://ttlc.intuit.com/replies/4785646
Next the limitations screen to confirm you are eligible to make the contributions:
Until you complete the HSA portion of the TurboTax interview to establish your eligibility for an HSA contribution, TurboTax will treat the amount entered on the W-2 form as an excess HSA contribution.
https://ttlc.intuit.com/replies/4788059
And lastly any distribution:
What you did is this:
1. Your employer contributed $5,800 (rounded up). This is code W in box 12 on your W-2.
2. Then you entered this same amount as a personal contribution on the "Let's enter [name]' HSA contributions" on the second line, where it tells you not to enter anything contributed through your employer.
3. This makes an apparent total of $11,600 in contributions.
4. You are evidently 55 or over, so your actual HSA contribution limit is $8,000 for Family coverage.
5. $11,600 minus $8,000 is $3,600, which is the amount that TurboTax reported as the excess.
Please go back to the "Let's enter [name]'s HSA contributions" screen and enter 0 (zero) on the second line, where it says "personal" contributions - this is ONLY for amounts you sent direct to the HSA custodian, not through your employer.
Yes ... reading all the words on the screen is important ...
Thanks for the quick reply.!
I did indicate that I have a Family HDHP. And even after going through all HSA related questions I was still told I overpaid $3600. Despite that I contributed less than $7000 between myself and my employer. So what would you suggest next?
Thanks!
Rich...
My description fits your result perfectly. Are you telling me that you did not enter your $5,799.84 on the second line on the "Let's enter [name]'s HSA contributions" screen?
OK, if that line is zero, then do this to delete all HSA data and start over:
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***
3. go to View (at the top), choose Forms, and select the desired form. Note the Delete Form button at the bottom of the screen.
*** 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.
Thanks for your help!! That was the problem - I really appreciate the quick response!