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vtrjs
Level 1

HSA Return of Excess Contributions Due to Social Security Signup (Medicare Part A)

Hello,

I have an HSA provided through my employer benefits program. In mid July 2019 my wife and I signed-up for social security benefits (wife primary, me spousal benefits). The social security office advisor offered that we could claim back 6 mos (to Jan 1, 2019) for these social security benefits - which we elected to take.  The downside relative to my HSA is that Medicare Part A started along with the Soc Sec benefits on Jan 1st.  This in turn meant that all my HSA contributions from Jan - mid July 2019 needed to be " returned". I did a "return of excess contributions" for the total amount of my contributions + employer contributions + earnings on the excess contribution amount. The HSA is still active with contributions made in years prior to 2019.

In Turbotax desktop - how / where do indicate this scenario and essentially add the excess contributions to my taxable income for 2019?

1 Best answer

Accepted Solutions
dmertz
Level 15

HSA Return of Excess Contributions Due to Social Security Signup (Medicare Part A)

Near the end of January you'll receive from the HSA custodian a code 2 Form 1099-SA that you'll need to enter into TurboTax in the HSA section.  (Indicate that you used your HSA to pay for something during the year; this is TurboTax's way of asking if you obtained any distributions from the HSA.) TurboTax will include the taxable amount on Schedule 1 line 8, identifying it as coming from your HSA.

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2 Replies
dmertz
Level 15

HSA Return of Excess Contributions Due to Social Security Signup (Medicare Part A)

Near the end of January you'll receive from the HSA custodian a code 2 Form 1099-SA that you'll need to enter into TurboTax in the HSA section.  (Indicate that you used your HSA to pay for something during the year; this is TurboTax's way of asking if you obtained any distributions from the HSA.) TurboTax will include the taxable amount on Schedule 1 line 8, identifying it as coming from your HSA.

vtrjs
Level 1

HSA Return of Excess Contributions Due to Social Security Signup (Medicare Part A)

Thanks very much for prompt answer. I already have a 1099-SA for the normal medical related distributions. Per your guidance, I'll look for a 1099-SA code 2 that covers the excess contribution distribution.

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