Why does Turbotax show an excess contribution to my HSA when there is not one?

[Jerigt]

Try removing the 1099s (hsa info) and adding it back.  Carefully watch how you answer the questions on having hdhp for all 12 months. make sure it’s the same for all 12 months.  That’s what caused mine to go bonkers. I was a just on my own Jan- May with HDHP and then May-Dec it turned into a family plan, HDHP (baby was added).  I answered each month like above states.  But when I went back and changed to family all 12 months, the excess error went away.  I technically had HDHP all year, but the software was glitching out on me on the 12 month question.  

[BillM223]

Jerigt

What does "the excess error went west" mean? Is that a good witch or a bad witch?

On the screen before you answer the HDHP coverage for each month, you have the opportunity to say that you had Family or Self all year. So you don't need to enter Family separately for each month (although that should still work).

I also can't tell if the program is working for you or not. Come back and tell us what status you are in, and we will work through any issues.

@Jerigt 

[yourmom0914]

It says that we contributed $3250.00 to much on my husbands HSA but we didnt, why does it show that or do we just need to take that amount from the HSA

Pam

[BillM223]

yourmom0914

You need to tell us what type of HDHP coverage you had, for how many months, how much you contributed to your husband's HSA, how much your husband contributed, if you had any excess HSA contributions carried over from 2023and so on. Oh, and if your husband is 55 or older.

Since we can't see your private tax data, we have to go through this process so that I can explain to you what happened.

@yourmom0914 

[Buserd1979]

I have about the same issue. It says I have an excess from last years return. But I did not have an HSA account last year or this year.. how to fix this ????

[BillM223]

Buserd1979:

If you did not have an HSA (more precisely, did not contribute to or withdraw money from an HSA this year or last year, how di you get into the HSA interview being told that you have an excess from last year's return?

When you arrived at this screen:

did you check any of the boxes? If you did not make any contributions into an HSA nor took any distributions from an HSA, then you should not have checked either HSA box. So did you?

If indeed you did not have an HSA, then please do the following to delete all references to HSA data (note: if you have a code W in box 12 on your W-2, then your employer thinks you have a HSA, and this will need to be discussed with them).

Delete HSA data in your return

1. make a copy of your W-2(s) (if you don't have the paper copies)

2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen)

*** Desktop***

3. go to View (at the top), choose Forms, and select the desired form(s) - 1099-SA (if one), 8889-T, and 8889-S (if one). Note the Delete Form button at the bottom of the screen.

*** Online ***

 3. go to Tax Tools (on the left), and navigate to Tools->Delete a form

4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)

5. go back and re-add your W-2(s), preferably adding them manually

6. go back and redo the entire HSA interview....

[ctburton94]

I'm having the same issue on my Tax Return.  Turbo Tax is saying that I'm overfunded on my HSA by $1500.  I have inputted my employer contribution of $1,500 on box 12 (W) of my W2.  I have made contributions outside of my employer of $6300.  My wife and I were both covered by a HDHP for the entire year.  The contribution limits for 2024 are $8,300 for family coverage.  We obviously are under the max, but at the end of the HSA questions it keeps telling me I have overfunded.  What is wrong with Turbo Tax here?  I have updated the program, hoping they have addressed it, but it is still not working.  I have used Turbo Tax for years.  This is very frustrating.  

Any help would be appreciated

[MarilynG1]

Your problem may lie in the HSA interview.  If you were the one with the HSA (checkbox on first page of the section), then you must indicate that you had the HDHP with Family Coverage.

You spouse can't have the HDHP and you have the HSA; they are linked.

If you had Family Coverage, don't indicate any HDHP for your spouse.

@ctburton94 

[ebertsj1]

You folks at TurboTax are DEAD wrong, have EXACTLY the same issue…and did NOT enter extra HSA ANYWHERE, and did claim as I always do head of household, I reported this on a cll, and your rep failed to address. Now, when I try to file an AMENDED return, cannot find a SINGLE place to revise, change, address. Get your act together, or this is the last year I and my dad use you! 

UPDATE…finally found the form where can change the excess to ZERO, BUT, whereas I was charged n excess $432 (6% of net $7200), my amended return shows refund of $300…what the heck is up? 

Will likely try using manual Fed form…if this yields the full $432, buh-bye Turbotax! 

[ctburton94]

This year's Turbo Tax has been super glitchy.  I ended up going back into my W2 to see if anything was wrong and after I opened it my Federal return numbers automatically updated, and I was able to get through the HSA section.  Also Tax numbers from last year's return (at the compare section) where WAY off.  Been using Turbo Tax for years now because of the reliability.  Stop blaming consumers who have used your product for years and address the software problems that obviously multiple people are having problems with.  Very disappointed in this year's rollout.   

Get you act together Intuit!!!

[FredJH]

#metoo

Turbo Tax Deluxe download...

I am NOT doing anything wrong - through payroll I contributed $2K and my employer contributed $2K ($4K  in box 12 on my W2). Additionally, I contributed an extra $2K during the year - so my TOTAL contributions were $6K. I'm 58 with a HDHP (family), my limit should be over $9K! But with a total of $6K, TT is telling me I'm $4K over.

Instead of getting a tax break on that additional $2K, TT is telling me I'm getting a penalty of 6% on $4K. It's just wrong, and having to delete and restart from the 1099-SA page is bad enough - and didn't work. Now I'm supposed to try deleting my W2 and re-entering all that information? That's BS, and even if it works, it's a kludgey work-around to a problem that shouldn't exist that I'm paying good money for.

EDIT: I went back to my W2 and deleted ONLY the HSA contribution... then re-added it, and that changed the amount from taxable to non-taxable and fixed THIS problem, but now it's saying my spouse had a break on HDHP coverage, which is NOT correct. This is unbelievably bad, Intuit! You're supposed to be saving me time and hassle, not CAUSING it!

[angelina852]

I don't know why but Turbotax is showing I have excess contributions of $1000. However, that is the total value of my employer contribution to my HSA from box 12 on my W-2. My gross distribution was $443.25 in 2024. This is all far below the $4300 limit for single individuals. I have re-entered my HSA info multiple times, and it is still saying my employer contributions of $1000 are taxable and not tax-free. I already did the following:

1. Completed the HSA interview, going all the way until I was returned to the "Your Tax Breaks" page.

2. Made sure I did not accidentally duplicate my contributions by re-entering my contributions on the "Let's enter your HSA contributions" screen. 

3. Made the code W amount is only listed on the W-2 page.

4. Correctly indicated that I have never been in HDHP coverage.

5. Correctly indicated that I do not have a carryover of excess contributions from 2023.

How do I fix this? 

[Mike9241]

4. Correctly indicated that I have never been in HDHP coverage.

if you don't have HDHP coverage you don't qualify for an HSA.  you probably do, check with your employer if needed, otherwise I don't think an employer would contribute to your HSA 

[angelina852]

Thank you, that fixed my problem. My employer called my plan the "basic plan with HSA" with a different plan option being "HDHP plan with HSA" so I was unaware that mine was technically also an HDHP plan as well.

[hbre]

I am using the desktop version and having the same issue. After reading several suggestions I found that going back to the W-2 with the HSA information and deleting the W and amount --> saving -- editing and readding the W & amount of the HSA contributions back--> saving again. Then it fixed whatever the bug is. I was able to go back to the HSA interview and complete it with no changes. At the end it no longer said I had any excess contributions. 

There seems to be a bug between the W-2  HSA amount and the HSA interview.