I filed taxes on time with no issues. I'm amending to remove my 22 year old son as a dependent. I updated TT and it is now telling me I have excess HSA contributions. I do not. Husband and I are both over 55. I contributed $8,000 through my employer.
For the questions, it asks "did I contribute any to my husband's plan." No.
Was he covered by an HDHP Plan. I put No - he's covered by mine. If I change that to Yes since he IS covered under a HDHP plan by me, it says he had a break from 2018. Not true, so I kept a No.
Form 5329 shows over-contributed by $8,000. I can override to 0, but this gives me an error message that I am not allowed to override here.
I did input box W from my W-2. Somewhere in all my searching though the return there was check box to transfer from federal" or something. I did not knowingly do any transfer. I don't know where that came from or how to even go back and uncheck, or if that is even the issue.
A common error that usually results in excess contributions is if you, on the Let's enter your HSA contributions screen, accidentally duplicated the amounts already reported in the first line, contributions from Box 12 of your W-2.
If you're within the limits but you're getting the excess HSA contribution message, it's most likely because you're not eligible or you answered the eligibility questions incorrectly. To recap, the HSA eligibility requirements are:
- You must be enrolled in a high deductible health plan (HDHP).
- You can’t be enrolled in Medicare or another secondary health insurance policy.
- You can’t be claimed as a dependent on somebody else's return.
To review your answers, step through the HSA interview again. An easy way to get there is to search for hsa in the search box in the upper right, then select the Jump to link in the search results.
The HSA is handled in 3 parts in the TT program :
First the contribution:
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.
And lastly any distribution: