Turbotax is showing excess HSA contributions from 2022 but I do not see where this is coming from on my 2022 return and did not over contribute. How do I correct this?

[Space_tomato]

My wife and I have a HDHP that has covered us for years.  Our 1040 from last year reflects this and shows 7300 employer contributions with 0 contribution from us.    Where is turbotax pulling this 'excess contribution' from on my 2022 return?  How do I correct it in 2023?

[BillM223]

OK, you are saying that when you did your 2022 return that TurboTax did not tell you that you had excess contributions, right?

On your 2022 return, did you have a form 5329? What are the values in forms 42-49?

In the HSA interview in your 2023 return, do you remember seeing the question, "Did you overfund your HSA in 2022?" What did you answer, yes or no? If "yes", what amount did you enter?

In your HSA interview in 2023, did you see the question, "Was [name] covered by a High Deductible Health Plan (HDHP) in 2023?" How did you answer?

[Space_tomato]

1) yes, I do not remember being told in 2022 that I had an excess contribution.

2) I did not have a 5329 attached to my 2022 taxes.   On my 1040 Schedule 2 Part 2 line 8 from last year, there is no entry, but  the box 'check here if not required' is also not checked.   

3/4) I did not see/or have not answered either of these questions yet on my 2023 interview, but it is specifically calling out "excess HSA contributions carryover from 2022 still in HSA account" as $7,300.

[BillM223]

OK, I should have asked earlier, are you using the Online product or the desktop product? If you are using the Online product, have you paid for it yet?

What I am looking for is, can you see the Carryover Worksheet, where a lot of information from your 2022 return is carried forward to 2023 (not just HSA stuff)?

Are you saying that you have not seen those two questions above? Did you go all the way through the HSA interview? Both of those questions are definitely in the interview.

What you might try (although I have never heard of this happening) is answer YES to "Did you overfund your HSA in 2022?" and then enter 0 (zero) as the amount that you overfunded.

[Space_tomato]

Thank you for your replies to me!

1) I am using the desktop version of the program...Premier specifically. and yes I paid for it.

2) I found the carry over worksheet by going to forms.  It says "Spouse's excess HSA Contributions as of 12/31" is $7300 for both 2022 and 2023.

3) I had not been asked those questions in the interview...but I had selected "let me select what I want to work on".  If I look through the work sheets, no selections had been made in the HDHP.  One additional thing of note...my spouse was listed 1st in the 2022 plan filing (and is primary on the HSA in both years), but I am listed 1st on the 2023 filing. 

[BillM223]

OK, now I understand.

You haven't done the HSA interview, so you haven't indicated that you have HDHP coverage. And as soon as you enter the W-2, TurboTax knows that you or your employer contributed $7,300, and without the HDHP coverage, all of the $7,300 is excess.

It will stop being excess when you complete the HSA interview showing that you have HDHP coverage.

But is the first thing you did was go look at the Carryover Worksheet? When you said that TurboTax had said that you had excess, I assumed that you did it the normal way - go through the HSA interview and get told about the excess by TurboTax.

OK, don't worry about the $7,300 carryover on line 11a or b for 2023 - that will go away when you complete the HSA interview.

As for the $7,300 on line 11 a or b for 2022, is it at all possible that you did something like amend your return or do multiple passes on your return, with one of them having an excess of $7,300? When you did the carryover of the 2022 return to 2023, it would transfer the data in whatever state it was in, which might not have been the state you filed it in. That is, if you file your return, the IRS gets that copy, but if you modify your return afterwards, TurboTax would have no way to know that this wasn't what you filed. I don't know why that number would be there for 2022 otherwise.

And if you did mess with your 2022 TurboTax return after filing, put it back the way it was and remigrate the 2022 return to 2023.

I don't know why the two spouses got switched, either.