Incorrect HSA calculation
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Returning Member

Incorrect HSA calculation

Hello,

 

Turbo Tax states my wife and I over contributed to our HSA's by $4,308. I was on a family plan all year and she an individual plan all year. Per box 12 (w) of our W-2's, our combined HSA contributions were $7,058.

 

I may have incorrectly entered an amount for personal contributions made, but have adjusted that to $0.

 

How can I correct this HSA calculation?


Thank you,

David

2 Replies
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Expert Alumni

Incorrect HSA calculation

First, you recognize that if one spouse is covered by Family HDHP coverage, then both spouses share the $7,000 Family coverage limit, split anyway that suits you (actually, TurboTax will do the splitting for you).

 

So based on your description, you should have had a $58 excess contribution. 

 

However, TurboTax sometimes calculates numbers and then won't forget them even when your input changes. The amount of excess contributions that you agreed to withdraw is one such example.

 

The only way to clear this up is to delete all the HSA data and start that section over again.

 

To do that, please do the following:

 

1. make a copy of your W-2(s) (if you don't have the paper copies)

2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen)

 

*** Desktop***

3. go to View (at the top), choose Forms, and select the desired form. Note the Delete Form button at the bottom of the screen.

 

*** Online ***

3. go to Tax Tools (on the left), and navigate to Tools->Delete a form

 

4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)

5. go back and re-add your W-2(s), preferably adding them manually

6. go back and redo the entire HSA interview.

 

Now you are starting with a blank slate and your results should be better.

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Level 15

Incorrect HSA calculation

another possibility is that if all the HSA contributions were on your W-2's you enter nothing as personal contributions. nothing should appear on line 2 of your forms 8889.  You need to complete two of those forms one for you one for your spouse.  you indicate on both covered by family plan.     you can leave the excess in. pay the 6% penalty and then may sure that in 2020 your combined HSA contributions reported on your w-2's doesn't exceed $6,942. the $58 excess from 2019 becomes a tax deduction bring you to the $7,000 max.  

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