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There might be an issue with form 8889-T being filler in correctly with HSA information. My form had no info filled in by month for coverage, so all was reported excess.

The interview method never asked for me to state that HSA was only for me by month (Jan-Dec) which propagates my allowable contribution limit. Once I manually typed this in the error regarding excess amounts went away and things went back to normal.
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1 Reply
MindyB
Employee Tax Expert

There might be an issue with form 8889-T being filler in correctly with HSA information. My form had no info filled in by month for coverage, so all was reported excess.

Here's how to use the interview to indicate the months you were covered by a High Deductible Health Plan (HDHP) in TurboTax Online:

 

  • Navigate to Federal Taxes,  Deduction & Credits
  • Choose "add/edit" HSA, MSA Contributions
  • You will see a page titled "Your HSA Summary" which will show any deductions already computed from your W-2  
  • Choose Edit, Check the box for HSA, Continue
  • You'll now see a screen that says "Here's what we have so far" with the information from the 1099-SA, choose "Edit"
  • After the entry screen for the amount distributed, double check the number is accurate, and when it asks "Did you spend your HSA money on medical expenses only?" answer "Yes", if accurate. 
  • Choose done and continue until you get to a screen that says "Let's enter your HSA contributions"
  • In the box "Any contributions you personally made (not through your employer)" don't enter the amounts you contributed through paycheck withholding. It has already been considered through your W-2 entry.
  • Continue on, until you are asked if you were covered by a High Deductible Health Plan (HDHP) in 2024? 
  • You will say yes, but beneath it, choose that you had different plan types at different times of the year.  Then, you can indicate you only had a HDHP in December and the contribution will be limited appropriately. 
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