TurboTax is saying this because you have not yet completed the section of your return about your high deductible health plan. It only sees the contribution reported on Box 12 of your W-2. To fill out the information about your HDHP:
- In the Federal section of your tax return, go to Deductions & Credits and scroll down to Medical and click Revisit/Start next to HSA, MSA Contributions.
- If you made any withdrawals from your HSA, you should receive a 1099-SA and answer Yes to Did you use your HSA to pay for anything in 2021? Otherwise, select No.
- Assuming you did not inherit this HSA, select No.
- Under Let's enter your HSA contributions your employer amount should already be in there from the W-2. Unless you made additional contributions, leave Any contributions you personally made blank.
- Answer the questions on the next two screens, then make sure you answer the question related to your HDHP correctly on the next screen. If you had coverage the entire year, you should not be penalized for excess contributions if your employer did not over-contribute or you made additional contributions out-of-pocket.
- Unless you overfunded your HSA in 2020. This answer is probably No.
