I don't think Turbo Tax is doing it right who can help me?

[sangeeth_george]

I feel like the guidance that I got from an advisor I Turbo Tax is not accurate and trying to get it vetted from another person. But not getting an appointment until April 16th. Why is that so?

[VolvoGirl]

You can try asking here.

[sangeeth_george]

I made excess contribution of $460 in HSA and contacted HSA administration to withdraw excess. But by mistake I requested $700. When I checked with the advisor he suggested to add $460 in 2018 returns and rest ($240) in 2019 returns. Is this right approach?
Second, after answering that I will be withdrawing $460 in Turbo Tax, I think it captured that in my W2 total. But advisor walked me through a step of adding  it as Miscellaneous Income, 1099-A, 1099-C. Now I feel like $460 is reflecting twice (Once under W2 and then under Misc Income section). What is the next steps here?

[dmertz]

The law only permits you to remove by return of excess contribution only actual excess contributions, so TurboTax will not permit you to enter anything greater.  Anything distributed beyond the excess contribution plus any earnings attributable to the excess contribution is a regular distribution.

Your advisor had an interesting suggestion, implying that the a portion of the excess was an excess contribution for 2019.  That could only work if you actually make an excess contribution of $230 for 2019 (which would effectively return to the account the $230 that should not have been removed), but it would be a bit difficult to explain to the IRS how you could make a return of excess contribution before actually making the excess contribution for 2019.  There can also be problems if an adjusted amount is distributed to account for investment gain or loss.

The $460 should not separately be added as Miscellaneous Income.  TurboTax automatically adds the $460 as Miscellaneous Income when the contribution was made through your employer (code W on your W-2) and TurboTax calculates a $460 excess.