We had an excess hsa contribution in tax year 2017.. I contacted my hsa company and they sent me the excess before we filed our 2017 taxes. 2018 return shows wrong amount
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New Member

We had an excess hsa contribution in tax year 2017.. I contacted my hsa company and they sent me the excess before we filed our 2017 taxes. 2018 return shows wrong amount

 
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Level 13

We had an excess hsa contribution in tax year 2017.. I contacted my hsa company and they sent me the excess before we filed our 2017 taxes. 2018 return shows wrong amount

The way this should work is this:

1. TurboTax detected an excess HSA contribution amount on your 2017 return, in early 2018.

2. This amount was added back automatically to your Other Income (line 21 on form 1040).

3. You called the HSA custodian in early 2018 to request the withdrawal of excess contributions.

4. The HSA custodian sent you a check.

5. You filed your 2017 return.

6. In early 2019, the custodian send you a 1099-SA with a distribution code of '2'. The amount of earnings on the excess is in box 2.

7. When you are doing your 2018 taxes, the earnings are added to Other Income as they should be.

8. Any amount in box 1 if the distribution code is '2' is ignored (as it should be).

Now, in what way did your experience differ from this?

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New Member

We had an excess hsa contribution in tax year 2017.. I contacted my hsa company and they sent me the excess before we filed our 2017 taxes. 2018 return shows wrong amount

For step 5, my 2017 return should not include the excess contribution as Other Income, right? Thanks!
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Level 2

We had an excess hsa contribution in tax year 2017.. I contacted my hsa company and they sent me the excess before we filed our 2017 taxes. 2018 return shows wrong amount

did you solve this issue? i'm about to file the same issue and want to know if the above advice fixed it. 

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Expert Alumni

We had an excess hsa contribution in tax year 2017.. I contacted my hsa company and they sent me the excess before we filed our 2017 taxes. 2018 return shows wrong amount

No, if you received the excess or applied it to the 2018 contribution, it would not be income in 2017.  @yijie-xue @jenn-lan

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