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Bug in calculating HSA contribution or am I missing something?

Forum|Forum|3 years ago
February 12, 2023
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My wife and I have separate HSA accounts through our employers. Our kids are on her insurance and she contributed $3660. I contributed $3575. So our total contribution is $7235. This is less than the 2022 limit of $7300 contribution for a family.

For some reason, TurboTax is calculating that I have excess contribution of $215. This makes no sense to me. Is this a bug? Is there a different different calculation that I am not aware of?

Best answer by dmertz

Because your wife has family HDHP coverage and you are both eligible individuals, you are both considered to have family coverage. In TurboTax, make sure to indicate Family coverage for each of you.

However, an indicated excess of $215 suggest that something else is going on, such as a excess HSA contribution being carried in from 2021 or mistakenly reporting an HSA contribution made through an employer as also being a contribution made personally.

SharonD007

No, there is not a bug in TurboTax for HSA contributions or a different calculation. You are correct that for a married couple where one spouse has a family plan and the other has an individual plan, that the $7,300 limit applies. There are two reasons why you may not be eligible to contribute the full amount:

The limits are prorated based on the number of months that you were covered by a High Deductible Health Plan (HDHP) and had no additional coverage.
If you were only covered for a portion of the year, your limit may be lower.

If these reasons do not apply, please review the HSA entry screens to check for errors that may be the result of your excess contribution. Please follow the instructions below to review your entries in:

Launch TurboTax and select Search at the top by the magnifying glass
Search for hsa and select the Jump to hsa
Answer the questions until you get to the Let's enter your HSA contributions screen
Verify that you didn't enter the amount already listed (from box 12 of your W-2 by the Code W)
Continue through the HSA screens, make sure you answer all questions correctly

If you made excess contributions to your HSA last year but withdrew the excess by the due date of your 2021 return, answer No to Did you overfund your HSA in 2021?

For more information, please refer to the TurboTax Help article Why am I showing an excess HSA contribution?

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R

RoeKAuthor

Thank you for your reply. However, both my wife and I were on HDHP that covered us for the whole year.

We did make an excess contribution in 2021 and we decided to pay the penalty rather than withdraw the excess. However, turbotax is saying we over funded our 2022 HSA before we even got to the screen where it asked about 2021.

I am still cannot confused by this discrepancy.

D

dmertzAnswer

Employee

Because your wife has family HDHP coverage and you are both eligible individuals, you are both considered to have family coverage. In TurboTax, make sure to indicate Family coverage for each of you.

However, an indicated excess of $215 suggest that something else is going on, such as a excess HSA contribution being carried in from 2021 or mistakenly reporting an HSA contribution made through an employer as also being a contribution made personally.