How do I tag my $500 excess HSA contribution refunded to me as from my employer? I contributed $4550 and then my employer contributed $500 putting me over the limit.

[e-g-wilson]

I am retired.  My former employer provided me no wages, just this surprise $500 to my HSA.  If Turbotax tags the $500 as a refund of what I contributed, then I do not get an income deduction on this. It actually was the money my employer contributed that put me over the limit and I requested refunded.

[Mike9241 · Accepted solution]

i suppose since you no longer work for the employer it could be regarded as a gift so as not to be taxable income. but since you got the money back - no deduction for 2022. if you qualify you could put the money back right now to get a 2023 deduction.  warning if you're on medicare or another nonhigh deductible health plan, or not covered by a health plan you don't qualify for an HSA contribution for any month not covered solely by HDHP. 

[e-g-wilson]

Thank you.  I thought about it and realized that the HSA administrator would have no way of knowing which money was returned to me and my former employer did not intend this as a gift direct to me to spend as I wish.  It made no difference whether I reached the $4650 max by my own contributions or those of my former employer.   The HSA does not allow money to be reclassified to another year; it only returns money.  I had to pay a $25 fee and spent time trying to get the overcontribution back with a required special Medallion signature form.  This year I am on the lookout for that $500 before contributing anything that might bring me to exceed the allowable contribution.