HSA Excess Contribution?

[Craig770011]

This year, I contributed via paychecks a total of $5370 to my HSA. I contributed an additional $3220 to it for a total of $8590 (barely over the family contribution limit of $8550). Our gross distribution is $9007, and we had a balance of $534 from 2024 (not an excess). Turbo Tax says that we have an excess contribution of $457 for 2025. This seems to be subtracting the contribution limit ($8550) from the gross distribution ($9007), and we're trying to figure out why it is not taken from the total contribution for 2025.

[Mike9241]

couldn't duplicate your issue, but I am using a desktop edition, whereas you may be using online.

This forum has no access to your return. Please recheck all your entries for the 1099-SA and the HSA. On Form 5329, you need to see Part VII, line 47, where the excess shows up. Based on what you provided, I would agree that the excess is only $40. 

The 1099-SA should have code 1 in box 3, (assuming the withdrawal was entirely for medical expenses. Amounts on the 1099-SA should not affect the calculation of any excess, regardless of the code. 

If you can fix the issue, you will need to contact support. You can allow the technical person to view your return to nail down what is causing this. It could be a TurboTax bug, but I believe you are the only one so far this year that has this issue. 

[Craig770011]

If I change the total contribution (I increased it by $50), that number stays at $457. If I change the gross distribution by $50 it also stays at $457. This feels like a bug. Where might I enquire to customer service?

[Opus 17]

I'm looking at the internal program worksheet on my return and the math just doesn't work that way.   I don't think it's possible for this to be a bug that only affects you.  I suggest you might have mixed up the entries of your 1099-SA and your contributions.  If that is not the problem, you will have to call customer support, they can do a screen share and look at your file with you. 

[Craig770011]

Where do I do that?

[Opus 17]

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@Craig770011 wrote:

Where do I do that?

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How you access support depends on the version you are using.  See this page.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/contact-turbotax/L2y9...

[Craig770011]

I did a screenshare with someone and we've made some adjustments to my contribution, and I'm trying to get a new 1099-SA to reflect that.

But, I need a sanity check here. The contribution limit takes into account these two numbers, right?

And the calculation should be $8550 - (5370 + 3220). Is that all correct?

Just having a new 1099-SA won't change any of those numbers. And if I change my contribution to $3120, it still doesn't change the contribution excess of $457, even though that should put me under the limit. So, I'm not sure how getting a new 1099-SA will help.

Am I missing something?

[Opus 17]

$5370+$3220 =$8,590, not $8550.

A 1099-SA reports withdrawals (distributions), not contributions.  Is that the confusion?  The 1099-SA shows what was paid to you or your providers, and it can't be changed unless it actually shows an incorrect withdrawal amount.  

Someone needs to look at your form 8889 and the associated worksheets.  You can't view those forms directly if you are filing with Turbotax online.  That's what customer support should have helped you with.  (You can view those forms directly if you are using the desktop program installed on your own computer, let us know if you are using the desktop program.)

If you are using TT Online, you may want to call support again and try and get someone more knowledgable.   Or, go to the support menu and look for "send file to agent".  This uploads an anonymous version of your file to tech support and gives you a token number so that someone can associate your case with that anonymous file.  Post the token number here and I can try and get a moderator to look at your case. 

[SuziM]

Greetings! 

  Thank you for reaching out and sharing your experience.  Since it seems we’ve exhausted any known troubleshooting, we would like to investigate this issue further.  If you’re willing, we would like to ask if you could provide a Diagnostic File of your return.  This copy will be purged of all personally identifiable information.  If you are willing, please follow the instructions provided below to get us the information we need. 

TurboTax Online​

1. Sign-in to your online account. ​ 
2. Select "Pick up where you left off"
3. Click on “Tax Tools” to the left hand side of the screen. ​ 
   
4. Select "Tools" 
5. A drop-down will appear. Click on “Share my file with  Agent”. This will generate a message that a diagnostic copy will be created.
6. When the token is generated, be prepared to type in your notes or in a message (unable to copy and paste) 
7. Click “OK”.  The tax file will then be sanitized and sent to us. This action will generate a Token Number  
8. Please respond directly to this message and provide the Token Number that was generated.  

TurboTax Desktop  

1. Open your return. ​ 
2. Click “Online” and select "Send Tax File to Agent". ​ 
3. This will generate a message that a diagnostic copy will be created.
4. When the token is generated, be prepared to type in your notes or in a message (unable to copy and paste) 
5. Click “OK”. The tax file will then be sanitized and sent to us. This action will generate a Token Number  
6. Please respond directly to this message and provide the Token Number that was generated.