2021 HSA contribution limit

[PattiF · Accepted solution]

It is not too late to make an HSA contribution for 2021. You do have until April 18, 2022, to make a contribution.

@taxedquestions

[taxedquestions]

Thanks!

[Mike9241]

you have until the due date of the 2021 return but make sure the trustee knows it's for 2021

[ajscottcpa]

Has the tax software been corrected for the HSA over limit error, as I am still seeing it, and believe I have not exceeded my contributions? 

[MayaD]

In most cases, your HSA contribution is reported in box 12 of your W-2 with the code W (Company Contributions to Health Savings Account). Do not enter that amount again in the Medical section. If you made an HSA contribution that wasn't reported on my W-2, you will enter that amount in the Medical section under Deductions and Credits. 

 For more information please check :

Why am I showing an excess HSA contribution in 2021?

[ajscottcpa]

The HSA contributions are only entered into one spot and have a total of $6500 for husband and wife and family, so I havent exceeded the limits, but the software is showing as such. 

[FangxiaL]

Try the following steps to resolve this issue:

Within your federal taxes:

1. Go to Deductions & Credits, click Edit next to HSA, MSA Contributions
2. Check the box Health Savings Account  (HSA) on next screen
3. Answer No to Did you use your Health Savings Account (HSA) to pay for anything in 2021?
4. Answer No to Did you inherit this HSA?
5. Continue till you reach the screen that says Were you covered by a High Deductible Health Plan (HDHP) in 2021, and select Yes, I was covered by an HDHP during at least one month during 2021.
6. Choose the options under What type of HDHP coverage did you have during 2021?
7. On the next screen, answer No to Did you overfund your HSA in 2020?
8. Click Done

@ajscottcpa

[dlgtaxd]

There still seems to be a bug in the turbotax software even though I've run the update. I am over 55 and turbo tax is not calculating the correct limit. My limit should be $8,200. How do I proceed so that I am not reporting an excess contribution due to the software error ?

[dlgtaxd]

Why hasn't the software bug been fixed yet ? Its March 31st !  Not happy.

[BillM223]

We do not know of a software error in the annual HSA contribution limit.

Please be aware that if you turned 55 during 2021, then the $1,000 "bonus" is prorated based on the number of months you were actually 55 or over. Thus, if you turned 55 on July 1st, then you would add $500 ($1,000*6/12) to your annual HSA contribution limit.

If this does not address your situation, please give us your details (type of HDHP policy), number of months under HDHP, the code W amount in box 12 of your W-2, any direct contributions to your HSA, and so on.

@dlgtaxd