2021 HSA contribution limit

Forum|Forum|4 years ago
November 30, 2021
24 replies
113 views

TurboTax 2021 has the wrong HSA contribution limit. The 2021 limit should be $7,200. I am over 55, and so am entitled to another $1,000.

My limit should be $8,200, but TT is showing $8,100 as my limit and is telling me I have over contributed by $100. Please fix the limit in the software.

Thanks.

Best answer by rjs

The early releases of any tax software for the new year are really just a rough draft. A lot of things aren't included yet, and a lot of things haven't been updated yet from the previous year. Things like inflation adjustments will be taken care of in updates over the next couple of months. The IRS has not even announced a date when filing 2021 tax returns will start, but it won't be until sometime in late January.

rjs

Answer

Level 15

taxedquestionsAuthor

Level 3

Thanks. I bought the software early to get a handle on what I might owe.

If the software is not up to date, can you tell me whether there will be a section for reporting stimulus checks received from the government? What form would they be reported on? A 1099-G?

Thanks.

rjs

Level 15

There will be a section in TurboTax for the stimulus payment. That's one of the many things that will be added in an update.

The only stimulus payment that affects your 2021 tax return is the third stimulus payment. It is not reported on a 1099-series tax form. If you received the payment, you should have also received a letter, Notice 1444-C, telling you how much you received and how it was paid. If you didn't get the letter, or misplaced it, you can get the information at the following link on the IRS web site.

Get My Payment

Go to the following link on the IRS web set for more information about the third stimulus payment.

Third Economic Impact Payment

JDS250

Level 2

The same issue exists for Single HSA limits. I put in $3600 for Single and it's telling me I overpaid by $500.

RobertB4444

Level 15

@JDS250 any chance you have HSA contributions included on your W2 form as well as the $3600 you entered? That would change the amount you entered. Any HSA contributions would be shown on your W2 in box 12 with code W.

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JDS250

Level 2

Sorry - wasn't clear. The $3600 for the HSA was from W-2 Box W. No other entry for HSA was entered. So the total contribution for HSA was $3600 which was from W-2.

dlgtaxd

Level 2

There still seems to be a bug in the turbotax software even though I've run the update. I am over 55 and turbo tax is not calculating the correct limit. My limit should be $8,200. How do I proceed so that I am not reporting an excess contribution due to the software error ?

BillM223

Level 15

We do not know of a software error in the annual HSA contribution limit.

Please be aware that if you turned 55 during 2021, then the $1,000 "bonus" is prorated based on the number of months you were actually 55 or over. Thus, if you turned 55 on July 1st, then you would add $500 ($1,000*6/12) to your annual HSA contribution limit.

If this does not address your situation, please give us your details (type of HDHP policy), number of months under HDHP, the code W amount in box 12 of your W-2, any direct contributions to your HSA, and so on.

@dlgtaxd

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