It appears that turbotax miscalculates excess HSA contribution my wife and I contributed a total of $9327 to our HSA but turbotax says that all of it is excess amount

[Critter-3 · Accepted solution]

The HSA is handled in 3 parts in the TT program ... did you complete at least the first 2 ? 

First the contribution:

https://ttlc.intuit.com/replies/4557768

https://ttlc.intuit.com/replies/4785646

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.

https://ttlc.intuit.com/replies/4788059

And lastly any distribution:

https://ttlc.intuit.com/replies/4787864

[h_mansour]

Great! thanks for the help,

The issue was with our eligibility (I had to enter we both had HDHP accounts in 2020)

[dmertz]

Note that there is no "our" HSA.  An HSA is owned and contributed to by an individual.  $9,327 exceeds the amount that any one individual is permitted to contribute to an HSA.  It also exceeds that amount that spouses are permitted to contribute combined.  Assuming that you were both HSA-eligible for all 12 months of the year, if either of you has a family HDHP plan the $7,100 regular HSA contribution limit for having family HDHP coverage is split between the two of you.  If you each have a separate self-only plan, each has a regular limit of $3,550.   Either of you who is age 55 or over is also permitted a catch-up contribution of $1,000. 

[neddie_flanders]

I am having trouble with the TT program.  I am eligable to contribute $7,600 into my Family HSA for 2021.  It is a messier calculation since my wife stopped her reg. family insurance and started Medicare for Nov and Dec.  That means I was not family but single-payer for Nov. and Dec.  The TT calculation reports I can contribute 7,600 but at the end says I overpayed by $2,667.  Anyone have any ideas.

[RaifH]

You and TurboTax agree on the contribution limit of $7,600. If it is saying you over-contributed to your HSA, it must believe your contribution amount was $2,667 greater than $7,600 or that you had over-contributed in a prior year.

 Under Let's enter your HSA contributions your employer amount should already be in there from your W-2. Only enter additional contributions, if you paid for them out-of-pocket. Do not include any elective deferrals from your paycheck. That is already included in the amount reported on your W-2 as Code W in Box 12. Answer Did your employer tell you about any other contributions? 

A few screens later, TurboTax asks Did you overfund your HSA in 2020? If you filed using TurboTax and did over-fund last year, there may already be an amount in there. If you over-funded last year, you would have to under-fund this year to get rid of the over-contribution amount. 

@neddie_flanders

[dmertz]

@neddie_flanders , assuming that you are age 55 or over, you are only permitted a $7,600 contribution in the absence of any contribution made by your spouse.  If your spouse made an HSA contributions of more than $833, together you have an excess contribution of the amount above $833.  A $2,667 excess suggests that your spouse has an HSA contribution of $3,500.  Since $3,500 was the contribution limit in 2019 for an individual with self-only coverage, perhaps this is a reported excess carried in from 2019.