Why turbo tax adds 1099-Sa box 1 and W-2 Box 12 numbers?

[BillM223]

Ok, Ashi, this still doesn't work.

You had $1,500 in excess contributions in 2020, which you carried over to 2021.

You contributed through your employer $7,160.

Your spouse contributed through the employer $200.

You say that this gives you an excess of $8,860.

It would do so only if the annual HSA contribution limit were zero for you two. But it can't be since, you showed $20 as "tax-free employer contributions".

Listen, I have no idea what you did, but the only way I can solve this is to see a copy of your return. I am asking you for a "sanitized" version of your return. You don't have to sanitize it, because we have a process in which our server will redact all personally identifiable information and then store the result in our database, given you a "token" which is an identifier so that we can find it.

To send us a token, please do the following: 

TurboTax Online:  

Click Tax Tools in the menu to the left.

Click Tools, and then

Click Share my file with Agent.

A pop-up message will appear. Click OK to send the sanitized diagnostic copy to us.

Provide the token number that is generated onto this thread.

TurboTax Desktop:

Select Online menu if the customer is using Windows. Select “Help” if using a Mac.

Select Send Tax File to Agent.

A pop-up message will appear, and the customer will select, Send. If using Mac "Send Tax File to TurboTax Agent" 

Note: Desktop will save a file to your computer unless you uncheck the box.

Another message will appear. Provide the token number that is generated onto this thread.

At the bottom of your reply (with the token) add "@" "BillM223" (without the space in between) so I will be notified.

This will let us see what is happening on your return. Thanks.

[Ashi]

Bill

I really appreciate you responding to my question and helping with this.

Token # 999891

"@""BillM223"

@BillM223 

[BillM223]

Well, now that I see your return, I realize why I had no idea what was happening. You are showing an excess contribution of $7,180 to an MSA (Archer Medical Savings Account). This reduced your annual HSA contribution limit to 7,200 - 7,180, or $20.

Somehow, you managed to convince TurboTax that you had an MSA, but when you switched to an HSA, you didn't delete any of the MSA entries. I don't know how you did the MSA contributions, because they don't appear on any of your W-2s (it would be an "R" in box 12). You may have entered the 7,180 into the MSA interview as a direct contribution (but you didn't have an MSA). All in all, you made several mistakes, so you will need to be more careful as you go forward.

In any case, you need to the following at a minimum:

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 (see list below). 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, 8889-S, 8853-T, 8853-S, 5329-T, and 5329-S.

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

6. go back and redo the entire HSA interview.

@Ashi

[Ashi]

Bill

Thanks a lot. I guess that might be an error from last year. I do have paper copy of w-2s and will try the steps. Will let you know. Appreciate it.

[Ashi]

Bill,

I wanted to say THANK YOU for all your help and guidance.

I tried what you described in your message.  But had the same error.  Eventually I had to go through the form in "View" to figure out where I had added the MSA contribution by error and delete that form. It is now corrected.

THANK YOU SO MUCH. APPRECIATE ALL YOUR HELP.

🙏 @BillM223