I received HSA 5498 and it shows an overage due to a refund a doctors office gave me. How do I fix this because they just refunded me what they mistakenly billed me for

[sand7]

I did not over contribute, but the doctor’s office overcharged me and then credited their mistake back to me, but it is showing as a contribution from them, which now puts me over the maximum.

[SharonD007]

You can fix the excess contribution created by the refund from your medical provider by withdrawing the excess contributions by April 18, 2023, which will avoid a penalty (October 15 if you file an extension). You must also remove any earnings on your excess contributions. Contact your HSA administrator to request the withdrawal by April 18, 2023.

You will also need to let TurboTax know that you are withdrawing the excess contribution. You will take these steps:

1. Go to the search bar at the top by the magnifying glass and type HSA
2. Select jump to HSA
3. You will be at the HSA summary screen and will see your excess contributions along with your employer contributions.
4. Select Edit and answer the questions
5. You may see a screen that has your 1099-SA if you entered any
6. Select Done
7. TurboTax will take you through a series of questions
8. When you get a screen that says, “You may want to withdraw money from your HSA.” It will give you options to select what you will withdraw: all, a portion, or none. If you do not want the penalty, select all.
9. When you go to the next screen, you will see a statement with the amount of excess employer contributions withdrawn 
10. Select Done.

If the contribution came from out-of-pocket and was not on your W-2, then you should receive a reduction in your income that would appear on Schedule 1, Line 13. There should be no penalties on Schedule 2 relating to your HSA.

For additional information, please review the TurboTax Help article Why am I showing an excess HSA contribution?