Turbo Tax reporting error for 2025 HSA contribution

[mkhalbert]

Turbo Tax is listing my employer/employee HSA contribution (box 12 code W) from my 2nd W-2 as an excess contribution.

I am married, and over 55, covered by a family HDHP plan for the entire year and changed jobs in 2025. For my first job, my employer and I contributed a combined $8058. For the 2nd job, the new employer and I contributed $1491 = total contribution of $9549 (the 2025 limit for married over 55 is $9550) I've made it through the HSA interview and get the question on whether I'm going to withdraw the $1491. I answer no and get the summary showing that my total tax deductible contributions are $9549. Turbo Tax then goes on to calculate tax on the $1491. Please help. Thanks in advance!

I am about ready to jump ship and work with a different tax services vendor.

[BillM223]

So, just to confirm, you received a message from TurboTax that you had excess contributions of $1,491, right? 

Next, you did not have a carryover of excess contributions from 2024, right?

Third, on the screen "Let's enter [your name]'s HSA contributions", the first line had 9,549, right? Did you enter anything as a "personal" contribution in the second line?

Last, did you spouse make any HSA contributions?

Online TurboTax is a DIY product, meant to help taxpayers who want to do their tax returns themselves. But taxpayers can have the occasional question. This is why you are offered "Expert Assist" or can click on "Live Tax Advice" to ask as few or as many questions as you have or even ask a TurboTax credentialed tax professional to simply do your return (TurboTax Expert Full Service). The Community is available here as a free place for you to ask questions, with the understanding that unlike the fee-based services, we in the Community cannot see your private tax data, which means that you have to provide much more detail and context for your questions.

[mkhalbert]

Hi Bill,

1) Correct Turbotax is Telling Me I Have Excess Contributions = To the Amount Reported in my W-2C

2) No Excess 2024 Contribution Carryover

3) Correct $9549 in Summary (Showing No Taxable Contributions) no Personal Contribution

4) No Spousal Contributions

I hope this helps someone else, as I went ahead and filed with a different online platform over the weekend. No errors with my HSA with the other provider.

[jimbo515x]

I am also receiving a similar error. 

I contributed the $8,550 plus $1,000 catchup to my HSA in 2025. I am over 55. I do not have any 2024 contributions being applied to 2025. I was covered by a high deductible family plan all of 2025. Turbo Tax is showing all months as covered by a family plan. Turbo Tax is displaying that I have a $1,000 excess contribution to my HSA and prompting me whether to withdraw the excess, withdraw some of the excess or not withdraw any. I am suing Turbo Tax Deluxe. A similar HSA catchup limit problem was also reported in 2024 (https://ttlc.intuit.com/community/taxes/discussion/bug-in-turbotax-2024-hsa-contribution-limit-is-wr...).

Please review Turbo Tax to confirm that it accounts for the correct HSA limits including the catchup contribution.  

Thank you,

[BillM223]

TurboTax does indeed properly handle the $1,000 catchup for HSAs.

Can you tell me if you are using the TurboTax Desktop product, or the TurboTax Online product?

I thank you for the data that you supplied. Can you give me the values in the HSA Summary at the end of the HSA interview?

They start with Deduction, then Total distributions, then Taxable distributions, and so on. 

If you are filing Married Joint, there will be two columns, one for each spouse.

Please give me the description for each row, and the values in the two columns.

[mkhalbert]

I am using TurboTax Online

There is only one column for me, my spouse isn't listed in the summary. He does not have an HSA, but is covered under my HDHP family plan. Here are the values listed by row:

                                                                            Kathleen

Deduction                                                              $0

Total Distributions                                                $1,028

Taxable Distributions                                          $0

Taxable Earnings on Excess Contributions    $0

Tax-free Company Contributions                     $9,550

Excess Company Contributions Withdrawn   $0

[mkhalbert]

See below for the section where TurboTax asks about withdrawing the excess:

Do you want to withdraw excess money from your HSAs?

It looks like Kathleen has an excess contribution of $1,490. Unfortunately excess contributions are taxed at an extra 6%. However, you can still withdraw up to $1,490 before April 15, 2026 to avoid the additional tax. Learn more Note: This does not include prior year excess contributions.

Yes, I'll withdraw the full $1,490 excess contribution by April 15, 2026.

We'll withdraw some of the excess contribution by April 15, 2026.

No, we won't withdraw any money from our HSAs.

[BillM223]

mkhalbert

please confirm for me that you have in the HSA Summary: "Tax-free Company Contributions                     $9,550", but that your first employer had a code W amount in box 12 of your W-2 of 8,058 and your second employer had a code W amount of 1,491.

Were all of your contributions through your two employers, or did you make some contributions directly to the HSA custodian?

One interpretation of your numbers is that you have code W values of 8,058 and 1,491 (which adds up to 9,549 as you note), then you also entered 1,491 as a "personal" HSA contribution on the "Let's enter [name]'s HSA contributions" screen, which would be a duplicate of the code W amount on the second W-2. If this is the case, $1 from the "personal" contribution would be applied against the annual HSA contribution limit, bringing it up to 9,550, leaving 1,490 as the excess.

If this interpretation is correct, just remove the 1,491 from the second line on the "Let's enter [name]'s HSA contributions" (it was a duplicate anyway), and the excess will go away.

P.S., when you got the excess message, how did you answer the question on withdrawing or not the excess? It may be important.

@mkhalbert 

[jimbo515x]

- please confirm for me that you have in the HSA Summary: "Tax-free Company Contributions                     $9,550", but that your first employer had a code W amount in box 12 of your W-2 of 8,058 and your second employer had a code W amount of 1,491.

What is entered into Turbo Tax is:

2025 employer and payroll contributions (Box 12 of your W-2) 1,000

Contributions James personally made (not through your employer) 8,550

The employer entry came from the imported W2

- Were all of your contributions through your two employers, or did you make some contributions directly to the HSA custodian?

The personal contribution was made directly to the HSA custodian.

- One interpretation of your numbers is that you have code W values of 8,058 and 1,491 (which adds up to 9,549 as you note), then you also entered 1,491 as a "personal" HSA contribution on the "Let's enter [name]'s HSA contributions" screen, which would be a duplicate of the code W amount on the second W-2. If this is the case, $1 from the "personal" contribution would be applied against the annual HSA contribution limit, bringing it up to 9,550, leaving 1,490 as the excess.

This scenario does not apply in this situation. Only 8550 was entered for the personal contribution.

On the excess message page, I initially chose to withdraw the 1,000 myself. 

Thank you

[mkhalbert]

I confirm that the HSA Summary for Tax-free company contributions says $9,550 and that my first W-2 has $8058 code W, the 2nd (incorrect W-2) had $167 code W and my third corrected W-2c has $1,491 code W.

I did not make any other contributions outside of my employers to my HSA.

I can't get to a screen that asks me to enter "personal" contributions to my HSA. I've tried multiple times.

I answered the "excess" question "NO" we won't be withdrawing the excess. This is my last response, I hope you all figure it out. I solved my problem by filing with H&R Block online instead.

[BillM223]

jimbo

Based on the data you have given me, I don't see why TurboTax would have told you that you had $1,000 in excess contributions. If you would, please send us a copy of your return. 

In order to pursue this issue and its rectification, I need a token from you. A token is a pointer to your tax data in our data base. However, the process of creating a token "sanitizes" your return so that all the personally identifiable information is removed. But I will need a sample return (but from a customer) in order to follow through with this. 

The instructions below tell you how to create the token and send it to me. Thanks!

Online

• Log into your TurboTax Online tax return
• On the left, click on Tax Tools
• Under Tax Tools, click on Tools
• In Tools Center, click on Share my File with Agent
• TurboTax will give you a “token”, a number
• Post the token number in this thread
• Be sure to add to that post “@” “billm223” (without the space in between) so that I will be notified

Desktop

• Open your return in the desktop product
• Look along the top and click on Online
• Click on Send Tax File to Agent
• TurboTax will give you a “token”, a number
• Post the token number in this thread
• Be sure to add to that post “@” “billm223” (without the space in between) so that I will be notified

[jimbo515x]

Tax File sent.

Token is 814553585-67488464

@BillM223 

(FYI, Minor enhancement would be to enable the dialog box so the token could be copied to the clipboard in Windows vs manually retyping.)

[BillM223]

jimbo

I have looked at your return. Your TurboTax return has gotten confused. Somehow, at some point, you got a message about having an excess contribution, and that you would withdraw $1,000.

Even though this is not now the case, TurboTax is mistakenly remembering that $1,000, telling you that it is an excess and reducing the HSA deduction on line 13 on Schedule 1 (1040) by $1,000.

The way to fix this is this is to delete your 8889-T and then redo the HSA interview, then everything was OK in your return.

*** Desktop/Windows***

1. Go to the upper right and click on Forms, and 

2. Select the desired form (8889-T). Note the Delete Form button at the bottom of the form’s screen.

*** Desktop/Mac***

1. Switch to Forms Mode by selecting the Forms icon.

2. From the menu, select the form (8889-T) you want to remove (if you don't see it, select Open Form at the top). From the Forms menu, select Remove [form name].

*** Online ***

1. go to Tax Tools (on the left), and navigate to Tools->Delete a form 

2. delete form(s) 8889-T

3. go back and redo the entire HSA interview....

@jimbo515x 

[jimbo515x]

@BillM223 Thank you! I removed the 889T form and this resolved the problem. Have a great day!