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Level 3
posted Jan 25, 2023 6:28:56 PM

I contributed to my HSA pre-taxed through my employer (W-2, box 12, W). When I completed the HSA Summary section, why did the amount of my refund increase?

No additional contributions outside of my employer were made, no withdrawals in 2022, and no over contribution.

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2 Best answers
Level 15
Jan 26, 2023 6:09:32 AM

Until you complete the HSA section to indicate your eligibility to contribute to an HSA, TurboTax treats the HSA contribution made through your employer as an excess contribution subject to a 6% excess contribution penalty.  Once you completed that section, TurboTax removed the penalty, resulting in the increase in your refund.

Level 3
Jan 26, 2023 6:46:11 AM

That makes perfect sense.  Thanks dmertz for solving another tax question!

2 Replies
Level 15
Jan 26, 2023 6:09:32 AM

Until you complete the HSA section to indicate your eligibility to contribute to an HSA, TurboTax treats the HSA contribution made through your employer as an excess contribution subject to a 6% excess contribution penalty.  Once you completed that section, TurboTax removed the penalty, resulting in the increase in your refund.

Level 3
Jan 26, 2023 6:46:11 AM

That makes perfect sense.  Thanks dmertz for solving another tax question!