W2 form is incorrectly showing HSA contribution for Spouse

[ivoree]

I entered the W2 and for some reason it is showing the HSA contribution of 2422.98 for Spouse instead of for Taxpayer (self). This value comes from my W-2.  "Did you put some of your HSA contributions into SPOUSE's HSA? No, I put all of my HSA contributions only into my own HSA."

I have tried deleting the W2 in the amended return and also re-entering it manually. Both times, it always shows as the HSA contribution for Spouse.

I was on self-covered plan entire year. Spouse was on a self-covered plan in January and then family plan through employer February-December to include spouse+child. Spouse had $6506 employer contribution and $594 self contribution. I contributed $2423 according to Box 12 of my W-2 (but $135 was made for the 2019 tax year).

[JohnB5677 · Accepted solution]

Your HSA is reported in two different areas.  The first is the W-2.  I think you have that all right.  The second is internal to the program.

To delete the information you entered in the HSA section of TurboTax, follow these steps:

1. Go to the Federal tab, and choose Deductions and Credits
2. Scroll to Medical, and under HAS, MSA Contributions, choose Revisit.
3. On the screen Tell us about the health-related accounts you had in 2020, uncheck the box for Health Savings Account (HSA)
4. Continue, and on the screen What type of High Deductible Health Plan did you have on December 1, 2019? check None.
5. Go back to Medical, and on Medical Expenses click Start.

Also, delete any Forms 8889 and 8853 that may have been created, by following the instructions in this link.

You may have have received a Form 1099-SA.

This will be posted under:

• Wages & Income
• Less Common Income
• Select 1099-SA
• Select the type of plan
• Continue through the interview
• When you get to Did you spend your HSA money on medical expenses only? Say Yes. 

[dmertz]

I was on self-covered plan entire year. Spouse was on a self-covered plan in January and then family plan through employer February-December to include spouse+child. Spouse had $6506 employer contribution and $594 self contribution. I contributed $2423 according to Box 12 of my W-2 (but $135 was made for the 2019 tax year).

---

If the code-W amount got incorrectly allocated between you and your spouse, you might need to delete both Forms W-2 and both Forms 8889 and then reenter them if there was a mistaken allocation of the code-W amounts.  But perhaps that's not really the problem.

When going through the HSA section for your own HSA, make sure that you indicate that your employer told you about other contributions and that you indicate that $135 was for 2019.

You have a $2,288 excess contribution between the two of you ($2,423 minus $135).  The maximum is $7,100 combined.  With your spouse having contributed $7,100, any amount that you contribute to your HSA creates an excess contribution.  You can allocate that $2,288 excess between the two of you any way that you wish, but it's generally easiest to allocate it all to one of you so that only one return of excess contribution needs to be done.

[dmertz]

Note that if the entire $7,100 limit is allocated to your spouse, $296 of your spouse's contribution would be made under the last-month rule and would be subject to a 10% additional tax if your spouse fails to remain an HSA-eligible individual throughout 2021.  If might be best to allocate the $2,288 excess (or at least $296 of the excess) to your spouse, avoiding the use of the last-month rule.

[ivoree]

Thanks. Unfortunately even after removing all the W-2s, the forms, etc. and clearing out no HSA for 2019, which appeared to clear out everything prior to re-entering the W2s, the new W2 form still populates as HSA contribution for spouse! Perhaps this is a software bug?

[cwg06]

Did you ever figure this out? It is doing the same thing to me. I'm a CPA and have used Turbo Tax since it came out and I can't get it to work.

Thanks.

[Critter-3]

First make sure the W-2 was listed to the correct person ... that error can have ripple affects later.

The HSA is handled in 3 parts in the TT program :

https://ttlc.intuit.com/community/health-care/help/what-is-a-health-savings-account-hsa/00/25765

First the contribution:

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-my-hsa-contribution/00/26...

https://turbotax.intuit.com/tax-tips/health-care/what-is-the-irs-form-8889/L8hRNHx4o

Next the limitations screen to confirm you are eligible to make the contributions:

Until you complete the HSA portion of the TurboTax interview to establish your eligibility for an HSA contribution, TurboTax will treat the amount entered on the W-2 form as an excess HSA contribution.

https://ttlc.intuit.com/community/health-care/help/why-am-i-showing-an-excess-hsa-contribution/00/26...

And lastly any distribution:

https://ttlc.intuit.com/community/health-care/help/why-is-my-hsa-distribution-taxable/00/26609

[NCperson]

@cwg06 - there are two places to enter the HSA contributions.  

1) the W-2...code W - most get that right.  The are "employer" contributions in IRS speak.

2) DIRECT or 'employee' contributions - there is a point in the interview where you are asked about contributions to the HSA.  these are NOT from the W-2, but rather situations where you send in a check to the HSA trustee to add to contributions outside of the paycheck. if the taxpayer didn't send any money directly to the HSA trustee (most don't!), the answer to this question is zero!