Desktop version incorrectly fills 8889 (HSA) form with previous year overcontribution as personal contribution

[Shneykspir]

I overcontributed $1000 in 2022 to my HSA and undercontributed $300 in 2023. 8889 box 2 shows $1000 (my contribution) when it should have 0. I did not contribute anything (only employer, less than the limit).

Because of that form 5329 box 47 says I overcontributed $1700 total ($1000 personal + $1000 from 2022 - undercontirubtion $300) in 2023 (instead of $700).

$300 undercontributed is now HSA deduction on form 8889 box 13. It should be 0.  

I have all the latest updates as of 02/15/2024 at 23:58PST.

When can I expect a fix?

[Mike9241]

were you covered only by a HDHP for at least 6 months in 2023 (the monthly proration when you have only eligible coverage is $321 per month)? if you were not covered by a HDHP at all in 2023, the excess from 2022 and the employer's share become excess contributions. if you were covered by a HDHP did you check off the type (self-only or family) for each month so covered in 2023? if not Turbotax thinks you didn't have any qualifying HDHP coverage. Were you covered by Medicare or any other health insurance that were not HDHPs for all of 2023, if yes it doesn't matter that you had HDHP coverage. Being on a non-HDHP for all of 2023 makes the $1700 contributions excess.  if for only part of the year you had non-HDHP coverage then a prorata portion of the full year amount is disallowed.

certain non--HDHP coverage is allowed that only covers  the following:

accidents

disability

dental

vision

long-term care

telehealth and other remote care

liability insurance related to torts, workers' compensation, or ownership or use of property

specific diseases or illness

a fixed amount per day (or other period) for hospitalization

[dmertz · Accepted solution]

For 2023, the IRS has instituted a requirement that any excess contribution made for a prior year being applied as a contribution for the current year be included on Form 8889 line 2 rather than just being included on line 13 as TurboTax has done in previous years.  However, when the TurboTax developers made this change in the February 8, 2024 release of 2023 TurboTax , they broke the calculation for line 43 of Form 5329.  The developers are aware of this.

You can sign up for notification of the fix here:

https://ttlc.intuit.com/turbotax-support/en-us/help-article/insurance-medical-benefits/turbotax-desk...