When I fill in the HSA account value, should it be the balance of HSA cash account only or the total balance of cash account and the Investment Fair Market Value?

[Chris-C-]

TurboTax requested to fill out the HSA account value under the Federal Taxes/ Deductions & Credits section.

[Critter]

Where are you seeing that question ?   That question is usually for an IRA  not an HSA.  

[BillM223]

Please enter the total cash value of the HSA. This means convert any investments into their current cash value.

This question is asked when the taxpayer has an excess HSA contribution that is carried over to the next year. The penalty is 6% of the amount of the excess carried over or the value of the HSA, whichever is less.

[Chris-C-]

The question is under the Federal Taxes/ Deductions & credits section.

[Chris-C-]

Hi Mr. Bill,

So that means the total balance of cash account & the Investment Fair Market Value showed on the statement, correct? 

[AnnetteB6 · Accepted solution]

Correct.  You would count the balance of the cash account and the value of the investments.  

@Chris-C-

[DN76]

I think there's a mistake on my TurboTax. It's telling me I have an excess HSA contribution for the exact amount that contributed this year ($1773).

I checked 2023 and that year I contributed $1950 according box 9 of Form 8889 so I surely didn't have an excess contribution in 2023 either?

What's going on?

[Mike9241]

Turbotax will show an excess upon entering the w-2 but before completing its HSA section. 

[DN76]

Thanks but I'm pretty sure it said it after I'd reported my contribution in the HSA section.

[DN76]

I just spoke with my HSA and they confirmed I didn't make an excess contribution. See attached.

So why is Turbotax telling me I did?

[MarilynG1]

Did you go all the way through the HSA interview, and link your HDHP?  If not, this can cause an excess contribution error.

If you're using TurboTax Online, close the program, clear your Cache and Cookies, and step through the section again.

Here's more info on Excess HSA Contribution.

@DN76