Why does it say I overpaid my HSA? It says I have to withdraw an amount of money from my HSA that is not in my HSA or it will be taxed.

[mwrhoades]

I am almost positive I did not overpay.

[LenaH]

It depends. For 2020, the maximum combined total that you, your employer, and/or any other eligible person can contribute to your HSA account is:

• $3,550 if you're under 55 at the end of 2020 and are covered by an individual (self-only) HDHP (high deductible health plan);
• $7,100 if you're under 55 at the end of 2020 and are covered by a family HDHP;
• $4,550 if you're 55 or older at the end of 2020 and are covered by an individual (self-only) HDHP;
• $8,100 if you're 55 or older at the end of 2020 and are covered by a family HDHP.

Spouses on separate plans: The $7,100 family limit applies to married couples even if one spouse is covered by a family plan and the other spouse has their own individual plan. In this scenario, the couple may split their respective contributions any way they like, as long as the couple's total contribution doesn't exceed $7,100. (Spouses 55 or older at the end of 2020 are allowed to contribute an additional $1,000 to their own HSA.)

If the 2020 HSA contribution exceeds the allowable amount, the excess must be withdrawn by May 17, 2021 to avoid a penalty (October 15 if you filed an extension).

Double-check your entries. TurboTax recommends revisiting the HSA entry screens to make sure the excess contribution wasn't due to an entry error.

Here's how:

1. With your return open, search for hsa inside your program and then select the Jump to link to open the HSA summary screen. On that screen, select Edit.
2. Step through the interview until you reach Let's enter your HSA contributions.
3. On that screen, make sure you didn't accidentally re-enter the amount already listed (from Box 12 of your W-2) as this will incorrectly double your total contribution amount.
4. Continue through the HSA screens, making sure you answered all questions correctly. To be eligible to contribute to an HSA in 2020, you:
   • Must have been covered by a high-deductible health plan (HDHP);
   • Didn't have Medicare or other secondary health insurance policy; and
   • Weren't eligible to be claimed as a dependent on another return, no matter if you were claimed or not.
5. Spouses on separate plans: If one spouse is covered by a family plan and the other spouse has their own individual plan, the maximum allowable contribution for the couple is $7,100 – not $10,650 – as explained above.
6. Excess contribution in 2019: If you overfunded your HSA last year but withdrew the excess by the due date of your 2019 return, answer No to Did you overfund your HSA in 2019?

If you overfunded or weren't eligible to contribute to your HSA in 2020, you'll need to withdraw the overage by April 15, 2021 to avoid a penalty (October 15 if you filed an extension).

[ivoree]

It also says I overpaid and when looking at the W2 form it shows that the contribution was made to spousal HSA plan even though that was not the case and we did not answer the TurboTax questions that way. I don't know how to fix it!

[JohnB5677]

Your HSA is reported in several different areas.  The first is the W-2.  I think you have that all right.  The others are 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.