why i have Excess employer contributions withdrawn HSA

[Joybay]

Tell Us about the health-related accounts you had in 2019
(1)HSA
1099-SA Box1 amount 4616.50
Did you inherit this HSA - NO
Let’s enter your HSA contributions
2019 employer and payroll contributions (Box12 of your W-2) $2800
Any contributions you personally made (not through your employer) $0
Did your employer tell you about any other contributions - NO
Did you have medicare at any time in 2019 -NO
Were you covered by a HDHP in 2019
- Yes, I was covered by an HDHP during at least one month during 2019
- I was convert by a family every month of the year
Did you overfund your HSA in 2018 - NO

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Your HSA summary:

HSA summary
Deduction $0
Total distributions $4617
Taxable distributions $0
Taxable earnings on excess contributions $0
Tax-free employer contributions $2800
Excess employer contributions withdrawn $1193

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I don't understand why I have "Excess employer contributions withdrawn $1193". For 2019,Family: $7,000 limit for HSA. I had total distributions $4617 from both 2019 ($2800) and 2018 ($1817). not sure where "Excess employer contributions withdrawn $1193" number come from. Any idea? Thank you !

[CatinaT1]

Did you have a prior year where you had to withdraw excess contributions?  It sounds like this is carrying over from a prior year.  If so, the question that says Did you overfund your HSA in 2018 or a prior year, you would say yes to and then when it asks about any overfunding you would say 0.  Excess contributions will continue to carry forward until you say you have removed the excess and have 0 overfunding.

[Joybay]

I have a prior year (2018) HSA contributions $1817, I didn't withdraw in 2018. I did start withdraw Jan 2019 for the prior year (2018) for $1817. There is no excess contributions in 2018. In 2019, withdraw $4616.50 was from $1817 (2018) and $2800 (2019) contributions. Both years, there were no excess contributions.

[Critter]

Did you complete all 3 sections of the HSA ?  Sounds like you skipped part 2 ...

The HSA is handled in 3 parts in the TT program :

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

[BillM223]

@Joybay

It can happen that numbers can get "stuck" in TurboTax. In this case, once the number for excess contributions withdrawn is calculated by TurboTax (really, the excess is calculated and you tell TurboTax how much to withdraw), you can't get rid of this number, even when you have changed all the other input which changes the excess (or reduces it to zero).

How do you fix this? By deleting all your HSA data and starting over.

1. make a copy of your W-2(s) (if you don't have the paper copies)

2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen)

*** Desktop***

3. go to View (at the top), choose Forms, and select the desired form. Note the Delete Form button at the bottom of the screen.

*** Online ***

3. go to Tax Tools (on the left), and navigate to Tools->Delete a form

4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)

5. go back and re-add your W-2(s), preferably adding them manually

6. go back and redo the entire HSA interview.

[Joybay]

Thanks so much to BillM223. The problem solved after I did the steps including delete 8889-T, W2 and reentered. Could not believe this Turbo-tax bug. really appreciated to everyone's help

[BillM223]

You are most welcome, joybay!