Excess HSA contribution due to Medicare lookback trap

[1dragonlady1]

I somehow got the $777 excess HSA contribution that was removed to show on Schedule 1 and the number flows into 1040X, thus increasing my taxable income by $777.  Because the amount Turbo Tax thinks is excess ($368) is not the amount I withdrew ($777) so I can't file the amended tax return electronically.  

On the 1040X Special Situations Smart Worksheet:  Should I check the box "Filing pursuant to section 301.9100-2" and thus allowing me to print "2024 excess HSA contribution ($777) removed 5/2/32025"?

I am not sure if I need to check any of the boxes (there are 7).

The 2024 tax filing deadline is 9/15/2025.

Please advise.  Thanks again for your patience.

[JotikaT2]

Yes, checking that box will include the applicable wording on top of your 1040X form.  Your amended return can only be electronically filed if you actually electronically filed your original return.

Form 1040X will also need an explanation on page 2, Part II under "Explanation of Changes."

@1dragonlady1 

[1dragonlady1]

I checked the box, typed in the explanation, printed the 1040X along with all paperwork associated with the amended tax return and mailed them to the IRS with a check (additional income tax on the $777).  Couldn't file the 1040X electronically because Turbo Tax thinks my excess contribution is less than what I removed.  Anyway, the amended Federal and state taxes are done and mailed.  Guess I just disregard the 1099 SA to be issued in January 2026 regarding the $777 excess contribution removal since I already accounted for it in the 1040X.

[dmertz]

With only $0.19 of earnings, yes, you can ignore the code 2 2025 From 1099-SA since the $0.19 rounds to zero.  If earnings had been more that $0.49, you would need to include this form on your 2025 tax return since the (rounded) earnings must be added to your 2025 AGI.

Make sure that when you begin your 2025 tax return with 2025 TurboTax that you transfer in the amended 2024 tax file, not the original.