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HSA Deduction both Spouses

My wife and I are both over 55 and we have 2 HSA accounts.  We fund the max contribution through my wife's work and is reported on her W2 ($8,300 for 2023 Tax Year).  I have a sole proprietorship LLC and since we are both over 55, I can contribute an additional $1000 in my HSA.  

 

My wife's contribution shows automatically as it is in her imported W2.  When I go to my HSA, it is only allowing me to enter the 1099-SA for the funds I pulled from my HSA in 2023, but not enter the $1000 that is tax deductible and should increase my refund once entered.  Using the Forms, I opened the 8889-T form for me and when I enter the $1000 I contributed in section 1. Box A, instead of INCREASING my refund, it DECREASED my refund as if the $1000 I contributed is not only NOT TAXDEDUCTABLE, but being taxed again (using funds I was already taxed on) and decreasing my 2023 Refund.  Something is not right here.  What am I doing wrong?

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2 Replies
AnnetteB6
Expert Alumni

HSA Deduction both Spouses

After you have entered your Health Savings Account (HSA) contribution, be sure that you continue to go through all of the questions in that section of your return.  

 

TurboTax does initially add contributions to income until it is verified that you are eligible to make the contributions, then the changes are made.  You need to complete the HSA section for both you and your spouse.  

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HSA Deduction both Spouses

the maximum when qualifying for the full year is 7750 which can be deposited in either account or split any way you want. The extra $1000 for being over 55 can only go into that person's account, since you are both over 55 each can make the $1000 contribution but it must be to their own account.  

2= 8889s need to be filed one for you and one for her. since she has family coverage (didn't she?) you are deemed to have family coverage so make sure both 8889s have family coverage checked. if you entered your $1000 on her 8889 then Turbotax rightly determines there's an over-contribution since her max is 8750 so your $1000 + her $8300 puts the total at 9300. Also, make sure each w-2 is properly coded as taxpayer or spouse. Many forget this and it causes all sorts of problems 

 

 

form 1099-SA is for withdrawals from an HSA not contributions and should not affect your taxes unless the code in box 3 is the than code 1.   form 5498-SA  is the form you should receive to report HSA contributions,

 

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