Why won't TT allow additional $1,000 for HSA? Married ($7100 allowed), husband is 57 ( $1,000) . We had 2 family, HD health insurance, TT is allowing only $7100.

[sshelkrot-gmail-]

HSA coverage was 12 months. $4500 in 1 account, $2861 in the other, totaling $7361. Why does TT say we're $261 over?

[SweetieJean]

The maximum allowed for Family Coverage for 2020  is $7,100.  It goes up to $7,200 for the 2021 tax year.

[sshelkrot-gmail-]

+ $1000 for over 55

[Opus 17]

Check your contribution amounts.  While your overall family limit is $8200, your personal limits are $7100 (under age 55) and $8100 (55 and over) so the extra $1000 can only be contributed into an account in your spouse's name.  

Check the account assignments (ownership).  Each HSA has only one owner, there are no joint accounts.  If both accounts are in your name, your limit is still $7100.  Your spouse needs a separate account in his own name for the other $1000 contribution.  If he is covered by an HDHP and has no other disqualifying coverage, he can have an account in his name even if he is not the primary insured person.  If you have two accounts in your name, you will need to open an account in his name, do a withdrawal of excess contribution from your account, and make a 2020 contribution to his account before April 15.  If you do have accounts in both your names, make sure the Turbotax program has correctly assigned the ownership of each account.  

Check your husband's date of birth in the personal info section. 

[sshelkrot-gmail-]

My understanding--confirmed by the HSA bank-- is married filing jointly I can contribute up to $7100, and  husband who is over 55 can contribute $1000.

Instead, I contributed $4500 and he contributed $2861. 

So what's the problem?

[Opus 17]

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@sshelkrot-gmail- wrote:

My understanding--confirmed by the HSA bank-- is married filing jointly I can contribute up to $7100, and  husband who is over 55 can contribute $1000.

Instead, I contributed $4500 and he contributed $2861. 

So what's the problem?

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In turbotax, did you accidentally enter both HSAs under your name?  Is your spouse's birth date correct?

[SweetieJean]

I contributed $4500. 

Sounds like you had two Self-Only plans, not two Family Plans.  If so, your maximum (under age 55) is $3,500.

[sshelkrot-gmail-]

I appreciate your sorting this out with me. . .but no, I did not put both HSAs in my name, and my husband's birth date is correct. The total amount we contributed was $7361, and TT is saying we are over by $261, which would be the amount over the under-55 max of $7100. ALso, it shows a $1000 deduction in my name, but I have no idea what that is, unless it's related to 2019 return that also claimed I was over by $1000 (same situation--I contributed $4500, family coverage, married filing jointly)

[sshelkrot-gmail-]

nope, family plans

[sshelkrot-gmail-]

nope, family plans. really appreciate your help, i'm so frustrated

[SweetieJean]

@Opus 17   It's my understanding that the program does not support multiple forms 8889 for taxpayer or spouse.  Could that be the problem?

[Opus 17 · Accepted solution]

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@sshelkrot-gmail- wrote:

I appreciate your sorting this out with me. . .but no, I did not put both HSAs in my name, and my husband's birth date is correct. The total amount we contributed was $7361, and TT is saying we are over by $261, which would be the amount over the under-55 max of $7100. ALso, it shows a $1000 deduction in my name, but I have no idea what that is, unless it's related to 2019 return that also claimed I was over by $1000 (same situation--I contributed $4500, family coverage, married filing jointly)

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So it sounds like your problem is 2019.

If Turbotax thinks you had an excess contribution of $1000 in 2019, and you did not remove the excess, then the excess remains in your account to be applied to future limits.  That means the program is seeing you as contributing $8361 for 2020 ($7361 in 2020 plus the $1000 excess contribution from 2019 that you apply in 2020 to use it up.)

The issue then is did you really have a $1000 excess in 2019.  You would need to look and see if you had form 5329 and form 8889 on your 2019 return.  If not, then how did it get in your 2020 return and how to get it out. If it is on your 2019 return and was incorrect for 2019, that needs to be amended. 

[Opus 17]

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@SweetieJean wrote:

@Opus 17   It's my understanding that the program does not support multiple forms 8889 for taxpayer or spouse.  Could that be the problem?

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I haven't heard that, that's why people sometimes ask about form 8889-T or 8889-S (the T and S indicate taxpayer and spouse).