I am married filing jointly and I contributed $7750 to an HSA through my employer. This is the amount that shows up on my W2 Box 12a with code "W". I was enrolled for the full year in 2023 in a family HDHP. I went through all the questions in the HSA interview but at the end of it TurboTax is saying that I have an excess contribution of $7750 and this amount is being taxed an extra 6%. It gives me three options to avoid this tax. However, I don't have an excess contribution as I believe $7750 is the limit for my situation...is this a TurboTax bug or am I doing something wrong?
Here is how I answered the HSA interview questions:
Did you inherit this HSA?
No
Let's enter your HSA contributions
2023 employer and payroll contributions (Box 12 of your W2): $7750 (This was pre-populated for me, so I didn't change it)
Any contributions you personally made: 0
Did your employer tell you about any other contributions?
No
Did you have Medicare at any time in 2023?
No
Were you covered by a HDHP in 2023?
Yes, at least one month
What type of coverage?
Family plan for every month
Did you overfund your HSA in 2022
No
You may want to withdraw money from your HSAs
It looks like you have an excess contribution of $7750. This amount is being taxed an extra 6%.
