The 2021 HSA contribution limit for a family is $7,200, I entered $6200. But Turbo Tax says I over contributed by $4200 and have to pay tax. What is going on?

[user62868891]

We have a family plan with a single HSA account for the 2 of us.

[JamesG1]

There is only your HSA account as a family plan.  

How did you answer the question What type of High Deductible Health Plan did your spouse have on December 1, 2020?

If you answered anything other than None, you could have generated excess contributions in the software.  Please advise.

[user62868891]

Hello James,

I selected "none", that is why I am pondering why it keeps insisting that I have over funded my acct by $4200. 

[RaifH]

Either TurboTax is calculating your contribution limit incorrectly or TurboTax thinks you contributed more than you did. Check your entries in the HSA section of your return:

1.  Enter your W-2 with the Code W in Box 12.
2. This should have opened an area on your tax return for HSAs. If you do not see it, go to Federal > Wages & Income > Less Common Income > 1099-SA, HSA, MSA and click Start/Revisit.
3. Make sure you have HSA selected.
4. If you made any withdrawals from your HSA, you should receive a 1099-SA and answer Yes to Did you use your HSA to pay for anything in 2021? Otherwise, select No.
5. Assuming you did not inherit this HSA, select No.
6. Under Let's enter your HSA contributions your employer amount should already be in there from the W-2. If you made any additional contributions, enter them here. Do not enter contributions that were taken out of your paycheck. Those are already accounted for on your W-2. Only enter contributions you made out-of-pocket, if any. 
7. Answer Did your employer tell you about any other contributions? 
8. Answer Did you have Medicare at any time in 2021?
9. Answer Yes to Were you covered by a HDHP in 2021?
10. If you were covered by a family plan every month, select I was covered by a Family plan every month of the year. If you were not covered all year, select I had different plan types at different times of the year and select the months you were covered. This will affect your contribution limit. 
11. After asking about prior year over-funding, you should reach Your HSA summary. If everything is in there properly, it should not calculate an over-contribution.
12. Answer None for coverage for your spouse since you only had your family plan.