1099-SA for Excess Contrib, I withdrew the excess, Answer Yes or No to the interview Q Did you over fund ?

[Tom in Raleigh]

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/we-have-a-family-hsa-turbotax-sa...

Not sure I can re-open a resolved question, so here goes again:

RE: But note: if you had an excess contribution in 2017 but cured it by withdrawing the excess in early 2018, then do NOT report an "overfunding" on your 2018 return.

#1 I overfunded/excess HSA contribution in 2019

#2 I filed the 2019 tax return not realizing #1

#3 Using Turbo Tax “TT” I filed an amended return for 2019 and paid $96 in tax - all before the tax deadline of 7/15/20, including receiving the overfunding refund check

#4 I received a 1099-SA for the Excess HSA funding with a Distribution Code of 2

#5 I entered the above 1099-SA in TT

So even though I received the “excess contribution” 1099-SA …

I should answer “No” to the question: Did you overfund your HSA in 2019 ?

I did “cure it” as in #3 above

I am confused, please help.  Thanks,

Tom

[BillM223 · Accepted solution]

Yes, you should answer "NO" to the question as to whether you overfunded your return.

What the question really wants to know is "Did you carry over any excess from the previous year?" Since you cured the excess by withdrawing it in a timely fashion, you did not carry over anything. This is why there is the reference to form 5329 - if you had carried over anything, it would have shown up on the previous year's 5329.

The question could be better phrased to avoid confusion.

I am glad my answer from way back when is still good. 😉

[Tom in Raleigh]

Hey Bill - Again many thanks - you are my hero.

Looks like you changed your "Handle"

Have a good weekend when it comes.

Regards,

Tom

[BillM223 · Accepted solution]

Yes, Tom, I had had several "handles" here at TurboTax...but it's still me ;-).

You, too, have a good weekend!