HSA form 5329

[bengliu]

I found out my 2019 return showed an excess HSA contribution which it picked up from 2018 return form 5329.  But my 2018 return did not have a form 5329.  The excess amount was the same amount as the contirution from W2 Box 12c (W). I did not make excess contribution in 2018. It could be a bug.  I stopped the HSA since 2019. The excess HSA is also showing up in my 2020 return.   I have to amend my 2019 return.  How do I move forward with the 2020 reutrn?  Can I force enter a zero amount excess HSA  in form 5329 for  2020?

[BillM223]

"I found out my 2019 return showed an excess HSA contribution which it picked up from 2018 return form 5329.  But my 2018 return did not have a form 5329."

I don't understand. If your 2018 return didn't have a 5329, then how did the 2019 return pick it up from the 5329 in 2018? It's probably not a bug. 

Do you have access to your 2018 return? What was the code W amount in box 12 on your W-2? What was the "HSA" or "Health Savings Account" or "8889" amount on line 21 on Schedule 1 (1040)? What type of HDHP coverage did you have in 2018 and for how many months?

All the same questions for your 2019 tax return.

"I stopped the HSA since 2019"

What does "stopped" the HSA in 2019 mean? Did you stop having HDHP coverage? Did you close your HSA?

"Can I force enter a zero amount excess HSA  in form 5329 for  2020?"

No, you cannot, but please answer my questions and we'll see if there is another solution.

[bengliu]

I have access to my 2018, 2019 via Turbotax.  

2018 return information

Code W amount in box 12 on W2-  amount is $7900

Schedule 1 (1040)  Additional Income section line 21-amount is 0

I have HDHP Family  coverage for the full year.

Form 8889 : line 1 checked family box, line 2 amount is 0, , line 3 amount is $6900, line 4 amount is 0, line 5 amount is $6900, line 6 amount is $6900, Line 7 amount is $1000, line 8 amount is $7900, line 9 amount is $7900, line10 amont is 0, line 11 amount is 7900, line 12 amount is 0, line 13 amount is 0, Part III distribution are all zeros

I did not have form 5329

I did not contribute to any other HSA account except the copany sponsored one

2019 return information

I did not participate in the company sponsored HDHP program and I did not contribute to other HSA account. 

Code W amount is box 12 on W2 is $0

Schedule 1 on 1040 line 21 is $0

I did not have to fill form 8889

I got form 5329,  Part VII line 42 amount is $7900 that TurboTax picked up from 2018 form 5329.

Thanks

[BillM223]

"I got form 5329,  Part VII line 42 amount is $7900 that TurboTax picked up from 2018 form 5329."

This would have appeared on the Carryover Worksheet on your 2019 return, showing the amount of the excess carried over from 2018.

By any chance, do you have the CD/download software for 2019? Can you take a look at the Carryover Worksheet for a line reading "Taxpayer's excess HSA contributions as of 12/31" (possibly line 11a, but could change from year to year)? If there an amount here (presumably $7,900)?

Assuming that this is not a bug (it's probably not), this is consistent with you doing your 2018 return and having excess contributions, then later, you fixed your 2018 return to make the excess contributions go away. Then, for 2019, you opened the 2018 tax return that had the excess in it (is it possible that you had two tax files in 2018?), as opposed to the one where you had no excess.

So, please tell me if you have the CD/download software...

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