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Turbo Tax says I have an excess contribution to my HSA, which is true but only $75, it is saying my entire contribution is in excess, why?

 
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Accepted Solutions
MichaelDC
New Member

Turbo Tax says I have an excess contribution to my HSA, which is true but only $75, it is saying my entire contribution is in excess, why?

A common error that usually results in excess contributions is if you, on the Let's enter your HSA contributions screen, accidentally duplicated the amounts already reported in the first line, contributions from Box 12 of your W-2.

Code W actually reports the combined contribution – yours plus your employer's. So if you contributed $1,500 to your HSA and your employer matched it dollar for dollar, Box 12 on your W-2 would show $3,000 with a code W.

If you duplicated the contribution in the Medical section, you should return and delete it there:
Look for the questions Were HSA contributions made in 2017? or Do you need to make any adjustments to your HSA contribution amount? When you answer Yes, TurboTax will open a screen where you can edit/delete your contribution.

If you're still getting the excess HSA contribution message, it's most likely because you're not eligible or you answered the eligibility questions incorrectly. To recap, the HSA eligibility requirements are:

  • You must be enrolled in a high deductible health plan (HDHP).
  • You can’t be enrolled in Medicare or another secondary health insurance policy.
  • You can’t be claimed as a dependent on somebody else's return.

To review your answers, step through the HSA interview again. An easy way to get there is to search for "hsa" (lower case) in the search box, then click the "Jump to" link in the search results.

If you have additional questions or details regarding this, please feel free to post in the comments for further clarification.

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7 Replies
MichaelDC
New Member

Turbo Tax says I have an excess contribution to my HSA, which is true but only $75, it is saying my entire contribution is in excess, why?

A common error that usually results in excess contributions is if you, on the Let's enter your HSA contributions screen, accidentally duplicated the amounts already reported in the first line, contributions from Box 12 of your W-2.

Code W actually reports the combined contribution – yours plus your employer's. So if you contributed $1,500 to your HSA and your employer matched it dollar for dollar, Box 12 on your W-2 would show $3,000 with a code W.

If you duplicated the contribution in the Medical section, you should return and delete it there:
Look for the questions Were HSA contributions made in 2017? or Do you need to make any adjustments to your HSA contribution amount? When you answer Yes, TurboTax will open a screen where you can edit/delete your contribution.

If you're still getting the excess HSA contribution message, it's most likely because you're not eligible or you answered the eligibility questions incorrectly. To recap, the HSA eligibility requirements are:

  • You must be enrolled in a high deductible health plan (HDHP).
  • You can’t be enrolled in Medicare or another secondary health insurance policy.
  • You can’t be claimed as a dependent on somebody else's return.

To review your answers, step through the HSA interview again. An easy way to get there is to search for "hsa" (lower case) in the search box, then click the "Jump to" link in the search results.

If you have additional questions or details regarding this, please feel free to post in the comments for further clarification.

Turbo Tax says I have an excess contribution to my HSA, which is true but only $75, it is saying my entire contribution is in excess, why?

Thanks for your response.

I erroneously 'duplicated' my HSA contributions last year and now I hope to get money back. Why would the HSA provider be required to send us 1099-SA form if we don't even have to enter it. It's almost setting up a self-filing non-tax professional to just fill in the blanks and fill out box 12 W and add 1099-SA; setting us up for failure.

JC154
New Member

Turbo Tax says I have an excess contribution to my HSA, which is true but only $75, it is saying my entire contribution is in excess, why?

I am realizing now (while preparing 2022 return) that I must have fallen into this trap on my 2021 return.  What do I need to do to correct this...file a 2021 "amended" return?  

DawnC
Employee Tax Expert

Turbo Tax says I have an excess contribution to my HSA, which is true but only $75, it is saying my entire contribution is in excess, why?

Correct what?  @JC154   This is an old thread, so I am not sure which post you are responding to.      But yes, if you made an error on your 2021 tax return, you would file an amendment to fix it.    What is it that you are now realizing about your 2021 return - - you may not need to amend it.    That link has information on reasons why you would need to amend it.  

 

How do I amend a prior year return?

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JC154
New Member

Turbo Tax says I have an excess contribution to my HSA, which is true but only $75, it is saying my entire contribution is in excess, why?

Thanks for the quick reply @DawnC 

 

I was responding to @ProvokedTomcat post Jan 22, 2020 (pasted below).  I did the same thing he described on my 2021 return.  I entered a 1099-SA that was sent to me for a $7,200 HSA contribution, but this wasn't required.  It wasn't required because my $7,200 HSA contribution was apparently already captured via the W-2 from my employer.  Entering the 1099-SA erroneously doubled my actual $7,200 contribution and triggered the Excess HSA contribution and a Form 5329.  (In 2021 the max per family HSA contribution was $7,200.) 

 

I should have caught this myself (noob), but some improved messaging from TurboTax would be simple to add advising on this situation.  I'm also fairly certain TurboTax summary screens in 2021 did NOT show me a $14,400 HSA contribution (only a $7,200) which didn't help at all, and would have made the error obvious.

 

I did just file an amended 2021 return that correctly reports a $7,200 HSA contribution, so this is resolved now.

 

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ProvokedTomcat

New Member

‎January 22, 2020 6:56 PM

Thanks for your response.

I erroneously 'duplicated' my HSA contributions last year and now I hope to get money back. Why would the HSA provider be required to send us 1099-SA form if we don't even have to enter it. It's almost setting up a self-filing non-tax professional to just fill in the

Turbo Tax says I have an excess contribution to my HSA, which is true but only $75, it is saying my entire contribution is in excess, why?

Was it worth the hassle to fix it relative to the cost?

I never filed an amendment... wondering how much ill get back if i do

JC154
New Member

Turbo Tax says I have an excess contribution to my HSA, which is true but only $75, it is saying my entire contribution is in excess, why?

@ProvokedTomcat   For me it was worth it.  I had never filed an amended return before, but it turned out to be very simple and didn't cost anything since it's included in last years TurboTax fee.  I'll get back $432 (the 6% penalty on the $7,200 erroneous "excess"). 

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