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May 16, 2021
Question

Turbo is asking me to verify and entry: Form 5239-T / Year end HSA value. Never been asked this in 7 years with Turbo. What did I do wrong here?

  • May 16, 2021
  • 1 reply
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Was about to file, but TurboTax asked me to verify the value of my HSA on December 31, 2020.  Where do I find this?  Why would it ask me a question that I have no idea what the answer is?

1 reply

Employee
May 16, 2021

Form 5329 calculates penalties; in the case of an HSA, it might be calculating a penalty for excess contributions, or for distributions that were not used for qualified medical expenses.   (The "-T" means "taxpayer", so the form 5329 is for the first-named taxpayer.  If you were married filing jointly, Turbotax would use "5329-S" to indicate it was the spouse who was being assessed the penalty.)

 

It sounds like you need to revisit the HSA interview to make sure you had qualifying HDHP coverage for the entire year, that you did not make excess contributions, and that you marked that your withdrawals were all used for qualified medical expenses.  Remember that HSA contributions made by payroll deduction are captured from your W-2 and are NOT entered again separately.  When the program asks for additional HSA contributions, only list contributions you made out of pocket and not via payroll.