Hi,In 2022: Husband made $3975 to HSA contribution under a family HDHP for him and kids. I made $3942 contribution to HSA under a self-only HDHP. That resulted in $617 over contribution. When filing tax, I just choosed On, we're not going to withdrawal and there was $37 additional tax added to our return. In 2023: Husband made $3850 and I made $3850 to HSA both under the same HDHP as the previous year. Now Turbo tax is saying that we have an excess contribution of $1, 184? How did this happen? Did I really over contribute? Or is there somewhere in Turbo Tax I can edit to make it go away? Thank you!

Y

ywy1611

Question

Excess contribution in 2022 HSA results in 2023 Excess Contribution? -- Solved

Forum|Forum|2 years ago
February 18, 2024
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Hi,

In 2022: Husband made $3975 to HSA contribution under a family HDHP for him and kids. I made $3942 contribution to HSA under a self-only HDHP. That resulted in $617 over contribution. When filing tax, I just choosed On, we're not going to withdrawal and there was $37 additional tax added to our return.
In 2023: Husband made $3850 and I made $3850 to HSA both under the same HDHP as the previous year.
Now Turbo tax is saying that we have an excess contribution of $1, 184? How did this happen? Did I really over contribute? Or is there somewhere in Turbo Tax I can edit to make it go away? Thank you!

O

Opus 17

Employee

Assuming your figures are correct, you should have an excess of $567. The allowable family maximum for 2023 is $7750, and you contributed $7700. That extra $50 you have under this year's cap should be applied to the prior year excess, leaving you with a current excess of $567.

You may have entered something incorrectly. Remember that workplace contributions are only entered from your W-2 -- turbotax gets them automatically from box 12 with code W. So double-check your W-2s. When you are asked if you made any additional contributions, only enter out of pocket contributions you paid directly to the HSA bank, not workplace contributions. Also check to make sure that you have told the program you both had qualifying HDHP coverage all year.

Did you enter that you each had a $617 excess? For purposes of this calculation, you should assign the excess to just one of the HSAs.

Other than those checks, you would need to look at the program internal worksheets to see if you can find what went wrong. If you are using the desktop program you can switch to forms mode but if you are using turbotax online, you need to call customer support so someone can look at the internals of your tax file.

Y

ywy1611Author

Hi,

I am looking at the output of form 5329.

It calculates as:

Line 46: prior year excess contribution $617.

Line 47: excess contribution of 2023 $567

Line 48: Total excess contribution $1184

And it's calculating a total tax of $71 for additional tax on line 49.

My question is: is this double counting or is it the way it should be? If it's double counting, how do I remove the $617 from prior year. My W2s are exactly $3850 and $3850 from box 12W.

Thank you so much for the reply.

O

Opus 17

Employee

The $617 carryover is correct, it is the $567 current year excess that is wrong. If you can access the forms, you need to look at both copies of form 8889 (yourself and your spouse) to see where the $567 is coming from.