Possible bug in TurboTax Online

Forum|Forum|1 year ago
July 24, 2024
2 replies
0 views

TurboTax Online added all Employer Contribution to HSA as taxable contribution. But the Tax-free employer contribution is 0. There are no any other contributions to HSA personal or spouse.

There is no any possibilities to correct this on my own. So I cannot continue with TurboTax Online.

The token number is 1252378

TurboTax Deluxe Online

Best answer by Mike9241

I9t would only be taxable if you failed too properly complete the HSA section in Turbotax or the answers you gave in the HSA section indicate that you/spouse do not qualify for an HSA. For W-2 purposes both employee and employer matching contributions are reported on the 8889 as employer contributions. we can't see your return so we can't identify the issue, but it seems no one else reported this. for example, if either of you are covered by a health FSA then no HSA contribution is allowed for the period covered by the FSA.

https://fsastore.com/articles/learn-can-i-have-an-fsa-and-an-hsa.html

you may also want to read PUB 969 which covers qualifications for an HSA

https://www.irs.gov/pub/irs-pdf/p969.pdf

Basic Turbotax online does not include free support but support for which you would have to pay can see your return to identify the issue.

5am-5pm Pacific Time (8-8 Eastern) Monday - Friday
https://support.turbotax.intuit.com/contact

800-446-8848

Bsch4477

Employee

Does your W-2 have an amount in box 12 code W?

Alex139Author

> Does your W-2 have an amount in box 12 code W?

Yes, there is a number almost the same as Turbotax put into taxable contribution.

Mike9241Answer

https://fsastore.com/articles/learn-can-i-have-an-fsa-and-an-hsa.html

you may also want to read PUB 969 which covers qualifications for an HSA

https://www.irs.gov/pub/irs-pdf/p969.pdf

Basic Turbotax online does not include free support but support for which you would have to pay can see your return to identify the issue.

5am-5pm Pacific Time (8-8 Eastern) Monday - Friday
https://support.turbotax.intuit.com/contact

800-446-8848

dmertz

Employee

For an HSA contribution to be treated as nontaxable and not subject to penalty, you must complete the HSA section of TurboTax to establish your eligibility for the HSA contribution. If you are married filing jointly, make sure that you have associated with the correct spouse the W-2 that shows the code-W amount and the entries in the HSA section.

Alex139Author

> For an HSA contribution to be treated as nontaxable and not subject to penalty, you must complete the HSA section of TurboTax to establish your eligibility for the HSA contribution. If you are married filing jointly, make sure that you have associated with the correct spouse the W-2 that shows the code-W amount and the entries in the HSA section.

Actually, it is not possible to make any changes there in the HSA, MSA Contributions section when W-2 was uploaded.

In the section HSA, MSA Contributions I can do the following:
1. Checkboxes for HSA accounts. I have one account on my name
2. Box 1 amount (distributions) from 1099-sa, editable field

3. Question about HSA account inheritace, answer no
4. Page with information from W-2. Number from box 12 of W-2. The number is not editable. But it is correct. Editable field for personal contribution. I have 0 here.

5. The question Did your employer tell you about any other contributions?, answer No

6. A few more questions with answers No.
7. The strange page: You may want to withdraw money from your HSAs. "It looks like you has an excess contribution" with the number from W-2 box 12 code W. "This amount is being taxed an extra 6%" and following options:
7.1 Withdraw by April 14 2024

7.2 Withdraw partially
7.3 No, we are not going to withdraw (selected).
8. Total HSA value, editable field. Also strange question as this must not affect taxes at all.
Then the page with results:
Deduction $0
Total distributions [Number from 1099-sa]
Taxable distributions $0

Taxable earnings on excess contributions $0
Taxable employer contributions [Number from W-2 box 12 code W]
Tax-free employer contributions $0
Excess employer contributions withdrawn $0

I did not file taxes with TurboTax last year.

dmertz

Employee

Between #5 and #7 you should have been able to indicate the type of qualifying HDHP coverage that you had each month, Self-only, Family or None. Upon competing this TurboTax indicates the maximum permissible contribution. With no qualifying HDHP coverage (or with disqualifying coverage such as Medicare) for a particular month, you are not eligible to contribute the pro-rated amount for that month.