Question

HSA contributions incorrectly shown on return as excess contributions

Forum|Forum|1 year ago
February 25, 2025
1 reply
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Both T & S contributed to their separate HSA accounts for 2024 through work, and it was under $2000 each which is well below the allowed amount of contributions. This is shown on their W2s in Box 12 with a code W. When this informaton was enterd in 2024 Turbotax it added the full amount as excess contributions, which is not correct. How can this issue be fixed? Thanks

B

BillM223

1. What was the type of your HDHP policy? Family or Self-only?

2. When the FULL amount of the HSA contributions are considered by TurboTax to be in excess, this is generally because the taxpayer did not properly complete the HSA interview, in which the taxpayer indicates the type of HDHP coverage for each spouse is entered.

3. I do not know if this is your situation, but taxpayers are often confused about how Family HDHP coverage works. The two spouses share the $8,300 annual HSA limit, not that one spouse has that limit and the other spouse has another limit (like 4,150) and the spouses think they have a 12,450 limit.

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N

NW06Author

Each of them had their own HSAs (It's slef only HSAs - both are 30 years old). They worked the full year and the employer (same university) made the contributions to their accounts. They did not contribute in additon to the employer contribution.

I read that the interview needs to be done, but couldn't find out how to start the interview since I have already entered their 2 W2s in 2024 Turbotax Premier.

Any help to get this issue resolved is really appreciated.

Thanks!

B

BillM223

In TurboTax, go to Deductions & Credits->Medical>1099-SA, MSA, HSA (note: this is the navigation for the CD/download product, the wording for the Online should be similar, but likely not identically the same).

This will start the HSA interview. The first screen will ask you for what medical accounts you have, and in your case, you need to check off HSA for each of you. Then continue on. TurboTax will ask for, among other things, the HDHP coverage for each of you.

Please go all the way to the end of the HSA interview (until you see the Summary). Now you should be OK.

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