I had a life change event last year. When the life change event occurred, my employer assigned me to a HDHP and I contributed 6750 to the HSA. My employer mistakenly assigned me to this plan. I wanted a HRA that was not HSA eligible. After talking with my employer, they back dated my healthcare plan so it would be the HRA the entire year. Once this happened, I closed my HSA and withdrew all funds - 6750. My W2 list 6750 in the 12W box. How do I pay taxes on this amount but not face any penalties???
My Deductibles and OOP Max were resetting mid year with the HSA so that was not the best choice.
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So in Turbotax, when you enter your W-2, the contribution will be brought in automatically from the W-2 and will be ineligible. When you run the 1099-SA interview, you will indicate that you were ineligible, but you had a return of excess contributions. That amount is added back to your taxable wages but you won't owe a penalty.
So in Turbotax, when you enter your W-2, the contribution will be brought in automatically from the W-2 and will be ineligible. When you run the 1099-SA interview, you will indicate that you were ineligible, but you had a return of excess contributions. That amount is added back to your taxable wages but you won't owe a penalty.
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