HSA deduction in the year I joined Medicare -2024- while my wife is still under 65 until late 2025

[DBaker59]

Hello,

For years we contributed to an HSA. I retired in 2020. My company offered an HDHP plan that we were able to use until we both turned 65.  Wy wife is still under this plan. I turned 65 in July 2024. My wife won't turn 65 until later this year. In TT it is not clear how to manage the HSA deduction/distribution. It acts like she did not contribute to the HSA....WE contributed to it and used it throughout the year. TT thinks we contributed too much. How do we all it otherwise and manage two people under one plan?

[BillM223]

You have one HSA? (each of you can have one).

You must enter the HSA interview (Deductions & Credits->Medical->1099-SA, HSA, MSA). Then for each of you who has an HSA, you will show what type of HDHP coverage you have, and how many months. TurboTax asks specifically about Medicare.

NOTE: To have HDHP coverage means that you don't have any conflicting coverage, like Medicare. Also, despite what many people think, you do not become ineligible for HDHP coverage just because you are 65. You don't become ineligible to contribute to your HSA until you actually go on Medicare (any part).

Most people contribute through their employer - Code W in box 12 on your W-2 - but you can also make direct contributions to your HSA as well. NOTE: any HSA contributions by you through payroll deduction are included in the code W amount, and should NOT be entered anywhere else on your return. Don't be confused by the IRS' "personal contribution" and "employer contribution" terminology.

If you have an excess HSA contribution on the first pass, then it is likely that you did not go through the HSA interview all the way to the end (to the HSA Summary screen).

OK, now do the HSA interview and come back if you have additional questions.