In 2016 had excess contributions to HSA and pulled the funds out of the HSA but was not completed until the day after tax day. So the contributions were withdrawn in 2017. In my 2018 taxes I now see that turbo tax showed my HSA distribution as being rolled over to another HSA instead of a withdraw in which I would have paid the 20% tax penalty. How do I correct this error so that I can complete my 2019 tax return without paying the 6% tax on the excess contribution?
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For 2019 you can go through the Health Saving Account questions and eliminate the excess contribution carryover.
Once you are in the HSA section, choose to enter the HSA account. You will come to a screen that asks Did you overfund your HSA answer yes, then go to page Enter last year's excess contribution. On this page blank the excess being carried over. Continue through the rest of the screens.
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