turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

The program is telling me I have an HSA over payment of $3200, but the difference between my w2 and 1099 is only $120ish. Not sure how to resolve.

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

The program is telling me I have an HSA over payment of $3200, but the difference between my w2 and 1099 is only $120ish. Not sure how to resolve.

Your 1099-SA reports only distributions (payments from you HSA), not contributions - so the amount here has nothing to do with an excess contribution.

The amount with code W in box 12 of your W-2 is the sum of what your employer contributed PLUS what you contributed by means of payroll deduction. 

There are several ways in which you might have made entries in TurboTax that led TurboTax to believe that you had an excess contribution when you didn't. For example, in your case, you may have had $3,300 in box 12 with a code of W. You contributed that entire amount through payroll deduction. But when you go to the "Let's enter your HSA contributions" screen (see screenshot below), you enter the $3,300 again in line 2 as a personal contribution - even though it was already in line 1 which comes from the W-2. This would cause an excess of $3,200 ($3,400-$3,300-$3,300 = $3,200 excess).

Or you and your spouse might not have realized that you can use the Family limit and the Self limit at the same time.

Please see the following to see if any of these apply to you:

One of the purposes of the HSA interview is to determine your annual HSA contribution limit.

As you probably know, the maximum limits in 2017 are:

  • $3,400 - individual with self-coverage
  • $6,750 - individual with family coverage
  • If the HSA owner is 55 or older, then you add $1,000 to these amounts.

However, these limits assume that you were in an HSA all year. If you left the HSA during the year or started Medicare or had one of a number of change events, then the limit is reduced

There are several major culprits for excess contributions (other than just actually contributing more than the limit). 

First, if you did not complete the HSA interview - that is, go all the way until you are returned to the "Your Tax Breaks" page - the limit still might be set to zero, causes a misleading excess contribution message. 

There are questions all the way to the end of the interview that affect the annual contribution limit.

Second, it is not unusual for taxpayers to accidentally duplicate their contributions by mistakenly entering what they perceive to be "their" contributions into the second line on the "Let's enter your HSA contributions" screen (see screenshot below). 

Normally, any employee who made contributions to his/her HSA through a payroll deduction plan has the contributions included in the amount with code "W" in box 12 on the W-2. This is on the first line on this screen (above). Don't enter the code W amount anywhere on the return other than on the W-2 page.

Third, if you weren't in HDHP coverage all 12 months, then the annual contribution limit is reduced on a per month ratio. NOTE, this means that you have to indicate when and under what type of HDHP plan you had. Be sure to answer the questions on the screen entitled "Was [name] covered by a High Deductible Health Plan in 2017?" (see screenshot below).

Fourth , if you had a carryover of excess contributions from 2016, then this carryover is applied to 2017 as a personal contribution, which could cause an excess condition in 2017 as well. But note: if you had an excess contribution in 2016 but cured it by withdrawing the excess in early 2017, then do NOT report an "overfunding" on your 2017 return.

Fifth, the Family limit ($6,750) is for the aggregate of contributions by both taxpayers, even if both taxpayers have their own HSAs. That is, one taxpayer can’t contribute $6,750 to his/her HSA and the other contribute $3,400 to the other HSA – the $6,750 limit applies to the aggregate of all HSA contributions credited to the family (in this case, the excess contributions would be $3,400).

View solution in original post

1 Reply

The program is telling me I have an HSA over payment of $3200, but the difference between my w2 and 1099 is only $120ish. Not sure how to resolve.

Your 1099-SA reports only distributions (payments from you HSA), not contributions - so the amount here has nothing to do with an excess contribution.

The amount with code W in box 12 of your W-2 is the sum of what your employer contributed PLUS what you contributed by means of payroll deduction. 

There are several ways in which you might have made entries in TurboTax that led TurboTax to believe that you had an excess contribution when you didn't. For example, in your case, you may have had $3,300 in box 12 with a code of W. You contributed that entire amount through payroll deduction. But when you go to the "Let's enter your HSA contributions" screen (see screenshot below), you enter the $3,300 again in line 2 as a personal contribution - even though it was already in line 1 which comes from the W-2. This would cause an excess of $3,200 ($3,400-$3,300-$3,300 = $3,200 excess).

Or you and your spouse might not have realized that you can use the Family limit and the Self limit at the same time.

Please see the following to see if any of these apply to you:

One of the purposes of the HSA interview is to determine your annual HSA contribution limit.

As you probably know, the maximum limits in 2017 are:

  • $3,400 - individual with self-coverage
  • $6,750 - individual with family coverage
  • If the HSA owner is 55 or older, then you add $1,000 to these amounts.

However, these limits assume that you were in an HSA all year. If you left the HSA during the year or started Medicare or had one of a number of change events, then the limit is reduced

There are several major culprits for excess contributions (other than just actually contributing more than the limit). 

First, if you did not complete the HSA interview - that is, go all the way until you are returned to the "Your Tax Breaks" page - the limit still might be set to zero, causes a misleading excess contribution message. 

There are questions all the way to the end of the interview that affect the annual contribution limit.

Second, it is not unusual for taxpayers to accidentally duplicate their contributions by mistakenly entering what they perceive to be "their" contributions into the second line on the "Let's enter your HSA contributions" screen (see screenshot below). 

Normally, any employee who made contributions to his/her HSA through a payroll deduction plan has the contributions included in the amount with code "W" in box 12 on the W-2. This is on the first line on this screen (above). Don't enter the code W amount anywhere on the return other than on the W-2 page.

Third, if you weren't in HDHP coverage all 12 months, then the annual contribution limit is reduced on a per month ratio. NOTE, this means that you have to indicate when and under what type of HDHP plan you had. Be sure to answer the questions on the screen entitled "Was [name] covered by a High Deductible Health Plan in 2017?" (see screenshot below).

Fourth , if you had a carryover of excess contributions from 2016, then this carryover is applied to 2017 as a personal contribution, which could cause an excess condition in 2017 as well. But note: if you had an excess contribution in 2016 but cured it by withdrawing the excess in early 2017, then do NOT report an "overfunding" on your 2017 return.

Fifth, the Family limit ($6,750) is for the aggregate of contributions by both taxpayers, even if both taxpayers have their own HSAs. That is, one taxpayer can’t contribute $6,750 to his/her HSA and the other contribute $3,400 to the other HSA – the $6,750 limit applies to the aggregate of all HSA contributions credited to the family (in this case, the excess contributions would be $3,400).

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question