HSA Over contribution correction error

Hello, in 2024 my employer over-contributed to my HSA by $100. In February 2025, I accidentally removed one dollar more than I was supposed to using the "Return of Excess" form through my HSA provider. So I removed $101 + interest.

On my 2024 tax return, TurboTax does not let me enter that I removed $101 excess. Instead it says I should enter $100.

In this case, can I enter $100 was removed, and on my 2025 return I can somehow have $1 + interest show up as income from schedule 8889? If not, how can I fix this?

1102

Returning Member

Mar 31, 2025 3:20:04 PM

Still need an answer to this

Expert Alumni

Apr 1, 2025 1:25:52 PM

In TurboTax, after you have entered the $100 return of excess, you will need to create a separate 1099-SA for a $1 distribution. Enter the 1099-SA from the same source that has you HSA account. Enter $1 in box 1, code 1 in Box 3 and check the HSA box. Then, when the system asks if this was used to pay medical expenses say 'no' and it will be added to your taxable income.

@rs-123

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HSA Over contribution correction error