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Turbotax does not identify the excess HSA contribution?

We have a family HDHP health insurance the whole 2023 and $ 7,600 (not exceed the $7,750 limit) was contributed to the HSA. But my wife got a part-time job with a non-HDHP health insurance since May 2023. I understand that we are not eligible for family HSA since May 2023, which decreases our maximum contribution from $7,750 to $5,150 ($7,750 for 4 months and $3,850 for 8 months). I think I have $2,450 excess contribution in this case. I have filed the 2023 tax return since TurboTax Premier does not warn about it. Can I do an amend through TurboTax PC client?

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6 Replies
BillM223
Expert Alumni

Turbotax does not identify the excess HSA contribution?

"I understand that we are not eligible for family HSA since May 2023, " - I want to rephrase this - there is no such thing as a Family HSA - only Family HDHP coverage, and the HSA is persistent, so you are still eligible to USE it, just that the HSA contribution limit may change.

 

"I have filed the 2023 tax return since TurboTax Premier does not warn about it." - Are you saying that TurboTax did not report an excess? Then you must have entered something different than what I understand you to say..

 

Does your wife have an HSA? When you say "Was [wife's name] covered by a High Deductible Health Plan (HDHP) in 2023?", in the subsequent interview, did your wife say first that she had different plan types at different times of the year, then went on to show coverage from Jan to April, and NONE for May to Dec?

 

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dmertz
Level 15

Turbotax does not identify the excess HSA contribution?

For the months that each of you had disqualifying insurance, you were required to tell TurboTax that you had no qualifying insurance, not Family or Self.  However, if the insurance that covered your wife for May through December 2023 did not cover you, that was not disqualifying coverage for you, only for your wife, and if all $7,750 was contributed to your HSA, there would be no excess contribution.

 

There is no such thing as a family HSA.  Only one individual (apparently you, not your wife) owns the HSA even though distributions from the HSA can be used to pay the medical expenses of a spouse or dependents.

Turbotax does not identify the excess HSA contribution?

Thanks to your reply. 

1.  I might not say it in the accurate way, I understand that my HSA limit for 2023 is reduced due to the eligibility change as I mentioned.

 

2. I did my tax return before I realized I have excess HSA contributions. After I realized it, I went to the TurboTax to navigate the questions and did not TurboTax warning about the excess contributions.

 

3. My wife does not have an HSA and she was covered by a HDHP family plan under me the whole 2023, and she was also covered by a non-HDHP since May 2023. I think you are talking about this: hsa.png

This only show up for me and did not show up for my wife. Do I need to choose "different plan types at different times" here?

 

Since this mistake has been made, I am thinking to "Move your excess health savings account contribution to next year". Does TurboTax support amending tax return with a 5329 form?

 

 

dmertz
Level 15

Turbotax does not identify the excess HSA contribution?

If your wife's non-HDHP coverage did not cover you, you do not have an excess contribution.

Turbotax does not identify the excess HSA contribution?

 

Her non-HDHP coverage does not cover me. Did her eligibility of HSA change since May 2023? Thus, I should not use the family HSA limit $7,750. Instead, I should use $5,150 = (7750 *4 +3850*8)  / 12.

dmertz
Level 15

Turbotax does not identify the excess HSA contribution?

You said that you had a family HDHP plan for all of 2023 and your wife's non-HDHP coverage does not cover you.  This means that you were eligible to contribute the full $7,750 for 2023 and you have no excess contribution.  Only if you had changed from a family HDHP plan to a self-only HDHP plan would your contribution limit be reduced.

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