Transferring 2023 to 2024 already saying I owe

[SDTON]

after transferring 2023 to 2024, turbo tax already showing that I need to pay x$ because of excess HSA contribution adjustment. I have refund last year. I went through the 2023 turbo tax software interview process again, and it did not show or indicate an excess HSA contribution. I was allowed to contribute max amount of $8,750 for family plus catch up and which is the amount I contributed. I was also covered with High deductible plan till the last month of 2023. 

[LindaS5247]

If you had an excess HSA contribution on your 2023 tax return, you had until April 15, 2024 to withdraw it. ‌Your excess HSA contribution would have generated a Form 5329, and the excess would be shown on line 48.

If you did not over-fund your HSA in 2023, you can go to your HSA screens in TurboTax you can answer "No" to the question "Did you overfund your HSA in 2023?"

If you have an excess on your 2024 return, you can tell TurboTax that you will withdraw it by April 15, 2025. You will have to contact your HSA provider to make the withdrawal on time. 

If your HSA is overfunded, you will indicate this on the TurboTax Screen that says, "You may want to withdraw money from your HSA".

You can select the option "Ok. I'll Withdraw $XXX excess contribution by April 15, 2025".

You will see the total amount of your excess contributions for the year on IRS Form 8889, Health Savings Accounts (HSAs). This amount would be taxable income.

All excess contributions are subject to income tax and a 6% excise tax each year until corrected.

To revisit your HSA screen in TurboTax to make sure your excess HSA contribution was not due to an entry error, you can:

1. Click on the search icon in the upper right corner of your TurboTax screen
2. Type "HSA" in the search box
3. Click on the link "Jump to HSA"
4. Answer the questions until you get to the screen "Let's enter your HSA Contribution"
5. Make sure you did not accidently enter an amount on this screen that was already reported in Box 12 of your Form W-2. This will double your total contribution amount.
6. Continue through your TurboTax screens and make sure all questions were correctly answered.
7. As per the above, if you removed the excess contribution from 2023 or did not have one answer "No" to "Did you overfund your HSA in 2023?"

Your screens will  look something like this:

Click here for "Why am I showing an excess HSA contribution?"

Click here for "What is a health savings account (HSA)?"

[SDTON]

 ‌Your excess HSA contribution would have generated a Form 5329, and the excess would be shown on line 48: Turbo Tax did not generate this form at all for my 2022 or 2023 tax return. I checked and I did not overfund my 2022 nor 2023 HSA.

[BillM223]

You can't know if you made excess contributions until you have entered your contributions into TurboTax and also gone all the way through the HSA interview until you get to the HSA Summary.

That is, don't pay attention to anything that TurboTax says just after you imported the previous year but before you enter anything, and don't pay too close attention to the Refund Meter while you are going through the TurboTax interview for 2024.

So, go through the HSA Summary and tell me the numbers in the HSA Summary, and then we'll know if you made excess contributions.