HSA contribution wrong tax year

Forum|Forum|3 years ago
February 7, 2023
1 reply
13 views

I personally made a HSA contribution in January 2022 which I accidentally added to tax year 2021. I filed my taxes not knowing this so the contribution does not show up anywhere as reduced taxable income. I now want to move that contribution from 2021 to 2022. I already spoke with my HSA about filling a mistaken HSA contribution form but they say I need to talk to the IRS or tax professional. Sounds like a huge ordeal when it really should be rather simple.

BillM223

Level 15

"which I accidentally added to tax year 2021." - So did you make the contribution after January 1, 2022, but actually told the HSA custodian that it was tax year 2021? That's not usually an accident (usually, the accident is making the contribution in 2022 and NOT saying it was for 2021).

"I filed my taxes not knowing this so the contribution does not show up anywhere as reduced taxable income." What were you not knowing? Which year the contribution counted for or that which year it was supposed to show up as reduced taxable income?

Did you have excess HSA contributions for 2021? If not, why don't you just take the deduction in 2021?

I don't understand your situation, because most taxpayers would prefer to do what you accidentally did. Please give me more detail.

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anonymous283Author

Level 2

I made the contribution after January 1 on my own through my HSA website where it asks me what tax year to use for the contribution. I picked 2021 when I meant 2022. I did not and never have made excess contributions. Yea I guess I'm not like most people. I want my 2022 salary reduced by the contribution as it wasn't in my 2021 tax return.

BillM223

Level 15

"I did not and never have made excess contributions." Too bad, it would have given us a way to deal with this.

OK. I am not sure why your HSA custodian wants you to consult with a tax professional. Either the HSA custodian will make the change or they won't. They don't have to make the change if their internal rules don't allow it.

Let's try this. Look at the "Excess Contribution Contribution and Deposit Deposit Correction Correction Request Request Form" for Optum Bank/Financial, #2 Withdrawal/Distribution Type, third entry (Individual Contribution tax year correction.)

Make the argument (but in the nicest way, but they can sit pat and refuse) that Optum Bank, one of their competitors, appears to let you move the contribution from one year to another, so why won't they (your HSA custodian)?

Now, it could be that Optum Bank won't allow this either because it's after April 15, 2022, but perhaps your customer service rep won't know that. Plus, this gives you some forms to look for on your own HSA custodian's website.

Note that we in the Community don't have access to the internal rules of HSA custodians, but you can give them a chance to help you out.

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