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New Member

My HSA form 5329 for 2018 is incorrect and is affecting my 2019 information

 
3 Replies
Level 8

My HSA form 5329 for 2018 is incorrect and is affecting my 2019 information

Form 5329 is for reporting excess contributions. Did you have excess HSA contributions in the past?

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New Member

My HSA form 5329 for 2018 is incorrect and is affecting my 2019 information

I had the same issue with my taxes.  I’m thinking I may have accidentally not marked it as a high deductable HSA, and it carried over the amount to my 2019 taxes in the 5329 section.  If anyone has a way to ccorect this I would be interested.

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Employee Tax Expert

My HSA form 5329 for 2018 is incorrect and is affecting my 2019 information

@dowen32

 

As ghost noted above, form 5329 is not an HSA form, it is a form on which a number of penalties is calculated, including penalties for excess HSA contributions that are carried over from the previous year.

 

I can't tell from your question what your exact issue is.

 

The way this is supposed to work is this:

 

1. If you make excess contributions to your HSA in one year, you are given the opportunity to withdraw those contributions before the due date of the return.

 

2. If you do not or can not do so, the amount of the excess that is not withdrawn is carried over to the next year, to be applied as a "personal" contribution.

 

3. The excess that is carried over is assessed a 6% penalty on line 49 on form 5329.

 

4. The next year, when TurboTax asks you if you "overfunded" the previous year, answer "yes" and enter the amount.

 

***NOTE***if you withdrew the entire amount of the excess before the due date of the return, then answer "NO" to the overfunding question, because TurboTax only wants to know if you carried over any excess.  

 

5. Reduce your HSA contributions in this subsequent year so that you allow for the carry over to be a personal contribution; otherwise, the excess condition will just happen again.

 

 

Now, having read this, do you still have a question?

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