Married filed jointly - Seperate HSA Plan shows twice as much excessive contribution

[ash_dyna]

My wife and I filed together。

She contributed $7300 for our family HDHP HSA plan,

I have a seperate coverage and I contributed $600 through my own payroll.

Now Turbo Tax notified us that "I" had an excessive contribution of $1200 and we need to withdraw $1200 to avoid extra tax.

Anyone know what's the issue here? Where does the $1200 come from?

[BillM223]

First, may I assume that neither of you are 55 or over yet?

Second, may I assume that only one of you has an HSA (HSAs are owned by the individual, there is no such thing as a family or joint HSA)?

Your $600 is clearly in excess by itself, so poke around in the HSA interview to see where you added another $600.

My guess on the $1,200 is that in your part of the HSA interview that on the screen headed by "Let's enter [your name]'s HSA contributions" that you entered $600 on the false assumption that you were supposed to enter "your" payroll deduction here, even though it was already listed above from box 12 on your W-2 with a code of W.

Once you enter the W-2, you should not enter any part of the box 12 amount anywhere else on the return. That second line is referring to HSA contributions that you made directly to your HSA, NOT through the employer.

[ash_dyna]

Hi there! Thanks for the suggestion!

Yes we are both under 55. But we do have two seperate HSA accounts. 

I'll try do edit that interview part! Will the fact that we have 2 seperate HSA accounts affect that tho?

[BillM223]

It's good (mostly) that you have two separate HSA accounts, because when one of you turns 55, you will be able to increase the annual HSA contribution limit for that person's HSA by $1,000 (but pro-rated the first year). The catch is that extra $1,000 has to go into that person's HSA.

No, having two separate HSA accounts does not affect this $1,200 excess. When you have Family HDHP coverage, the annual HSA contribution limit is shared by the two married taxpayers, in any way that you like (although TurboTax works it out for you).

So for now, just pretend that you have one virtual HSA, and the excess applies to one HSA or the other (your choice).