Over contributing to HSA for 2023

[meow-tax]

Hello,

At the start of 2023, I was employed with Company A and had maxed out my annual HSA contributions of $3,850, this is a mix of employer + pre-tax payroll contributions.

I switched jobs in July 2023 and the new employer (Company B) contributed a fixed amount of $500 to my HSA.

I contacted the HSA trustee with Company A and completed a Distribution of Excess HSA Contribution form to withdraw $500 and the interest earned on it. They mailed me a check and I deposited it into my bank account.

I'm just wondering if I will need to contact Company A regarding this excess withdrawal so they can update Box 12 of my W-2 or will the 1099-SA form from the HSA trustee be sufficient for filing my taxes?

Any help/suggestions would be appreciated!

Thank you!

[Mike9241]

the w-2 s are correct you will indicate through reporting the 1099-SA that the excess was withdrawn

[meow-tax]

Thanks for the response!

Just to confirm, all the of the Box 12 on my W-2 forms collectively will sum up to more than the annual limit of $3,850, but my 1099-SA will show that I withdrew the excess amount along with the interest. Then I will just need to report this excess amount as normal income and pay taxes on it?

[dmertz]

Because the excess was not returned to the employer, each employer must report with code W in box 12 of the W-2 the actual amount they deposited into the HSA.

When 2023 TurboTax indicates that you have an excess contribution of $500, you'll indicate that you will "withdraw" the $500 of excess contribution by the filing deadline.  TurboTax will include the $500 on line 8f of your 2023 Schedule 1, indicating that you had the $500 excess returned.

When you enter the code-2 2023 Form 1099-SA, TurboTax will also include the interest shown in box 2 of the Form 1099-SA on line 8f of your 2023 Schedule 1.