When I filed my taxes, it said I had too much mone...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
artist59
New Member

When I filed my taxes, it said I had too much money in my HSA and would need to withdraw it. Only $2,250 deposit and $1,870 withdrawls. How do I fix my tax return?

 
3 Replies
BMcCalpin
Level 13

When I filed my taxes, it said I had too much money in my HSA and would need to withdraw it. Only $2,250 deposit and $1,870 withdrawls. How do I fix my tax return?

The error message did not say that you had too much money in your HSA; I am sure it said that you had contributed more than the annual HSA contribution limit for the year to your HSA.

 

The normal annual HSA contribution limit for a Single coverage in an HDHP in 2018 was $3,450 ($6,900 for Family coverage). HSA owners 55 and older get a $1,000 increase.

 

However, your contribution limit can be reduced by a variety of factors, such as how many (and which) months you had HDHP coverage, whether or not you were covered by other insurance at the same time (such as going on Medicare), whether or not you changed coverage (Single to Family and vice versa) during the year, and so on.

 

The screen that told you that you had made excess contributions and would you like to withdraw them should have told you the amount of the excess. Since we cannot see your tax return, in order to answer your question, please tell us how much you contributed to your HSA (usually the code W amount in box 12 on your W-2), the amount of the excess that TurboTax reported, and whether you had Single or Family coverage from your HDHP policy. Also tell us which months you had that coverage.

 

It can happen that the user can accidentally indicate to TurboTax a situation that makes TurboTax think that you made an excess contribution when perhaps you didn't.

 

Give us the details and we'll work out what you need to do...

mtedke
New Member

When I filed my taxes, it said I had too much money in my HSA and would need to withdraw it. Only $2,250 deposit and $1,870 withdrawls. How do I fix my tax return?

I am 57 year old male box 12 shows 3500 do I have to withdrawl this?

WendyN2
Level 6

When I filed my taxes, it said I had too much money in my HSA and would need to withdraw it. Only $2,250 deposit and $1,870 withdrawls. How do I fix my tax return?

No. HSA money is yours to keep. Unlike a flexible spending account (FSA), unused money in your HSA isn't forfeited at the end of the year; it continues to grow, tax-deferred. Once funds are deposited into the HSAthe account can be used to pay for qualified medical expenses tax-free, even if you no longer have HDHP coverage. The funds in your account roll over automatically each year and remain indefinitely until used. There is no time limit on using the funds.

Dynamic AdsDynamic Ads
v
Privacy Settings