HSA Contributions in 2021 - Over contribution?

[Dobber326]

I believe that turbotax is wrong in telling me that I have over contributed to our HSAs in 2021.

My wife has a separate HSA (self-only) and contributed $1875.  She is under 55.  I have a family HSA and contributed $6320.  That's a total of $8195.  The max contribution allowed is $7300, but since I'm allowed a $1000 catch-up contribution (I'm over 55), that would be $8300.

Turbotax is telling me that I've overcontributed and asking me which of us has overcontributed.  I think that is wrong, since we are under $8300 for our HSA contributions.

[RaifH]

You are correct, you should not be hit with an over-contribution penalty. The maximum contribution would actually be $8,200, but you are still under. This is assuming that you had your family coverage every month of the year. To make sure everything is entered in TurboTax correctly, follow these steps:

1. If your HSA contributions are from your employer, after entering your W-2 with the Code W in Box 12, it will ask if any of the HSA contributions were routed to your spouse's HSA. If so, answer Yes and enter the amount. If your spouse's employer also contributes to their HSA, enter that as well.
2. This should have opened an area on your tax return for HSAs. If you do not see it, go to Federal > Wages & Income > Less Common Income > 1099-SA, HSA, MSA and click Start/Revisit.
3. Make sure both of you have HSA selected.
4. If you made any withdrawals from your HSA, you should receive a 1099-SA and answer Yes to Did you use your HSA to pay for anything in 2021? Otherwise, select No.
5. Assuming you did not inherit this HSA, select No.
6. Under Let's enter your HSA contributions your employer amount should already be in there from the W-2. Unless you made additional contributions, leave Any contributions you personally made blank. Please do not re-enter your contribution from your paychecks here as that has already been accounted for by the amount on your W-2.
7. Answer the questions on the next two screens, then make sure you answer the question related to your HDHP correctly on the next screen. If you had family coverage the entire year, you should not be penalized for excess contributions.
8. For your spouse's HSA, make sure the employer contributions are reported correctly. If you made contributions out-of-pocket, you can enter those. You should receive a deduction for any out-of-pocket contributions to either of your HSAs. 
9. As long as you did not over-contribute in 2020, no over-contribution should be calculated for 2021 based on the information you provided. If it is still calculating an over-contribution, make sure your birthdate is entered correctly in the My info section of your return so that you are getting the $1,000 additional contribution amount.

[Mike9241]

under the rules for HSA if you have family coverage your spouse is treated as having family coverage. IRC 223(b)(5)(A).

$7200 max for family coverage + $1000 for you being over 55. 

change your spouse to family coverage.  there should be no excess unless you had an excess from the prior year which wasn't withdrawn.