Hi!
I have a question about how to have my HSA excess contribution reflected properly in TurboTax. I have TurboTax Premium 2023 via the web browser.
My situation
How I intend for this to show up in TurboTax
How it's actually showing up in TurboTax
Any guidance here would be much appreciated. I don't want be stuck with paying a 6% excise tax forever, and so have tried to remove the excess/earnings. If the solution here is to pay the 6% excise in 2023, wait for my official 1099-SA, and handle this in 2024 filing then that's OK too.
Thanks!
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I would heavily document what you have done and why, in case anyone ever asks. It's hard to imagine the IRS being upset that you are paying extra taxes, and truly you were just trying to stop year-after-year penalties.
So if you do this, just remember that if you get a 1099-SA in the near future, that you have already entered it, so make note that that's what you did.
Update here --
If I indicate that I had a 1099-SA and classify the distribution in box 3 as a Normal Distribution (code 1) then I am able to indicate that none of the distribution was used for qualified medical expenses. Then I correctly see the withdrawal $1,755 as a Taxable Distribution on Form 8889 and this amount showing up as Other Income. I no longer see the excess contribution (nor am I paying the 6% excise tax), but would now be paying the Additional 20% tax on the $1,755 distribution.
So now I believe my question is: am I OK to report that I had a 1099-SA for 2023 Tax year even though I made my distribution in March 2024 (prior to filing) and have not been issued the 1099-SA yet? Thanks!
I would heavily document what you have done and why, in case anyone ever asks. It's hard to imagine the IRS being upset that you are paying extra taxes, and truly you were just trying to stop year-after-year penalties.
So if you do this, just remember that if you get a 1099-SA in the near future, that you have already entered it, so make note that that's what you did.
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