Question

Why does it say I overfunded my HSA? Is TurboTax wrong?

Forum|Forum|2 years ago
March 16, 2024
1 reply
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I recently graduated college and started a new job last September. I have a HDHP and HSA which my employer also contributes to. I checked my HSA account and there were no tax forms except for a 5498 form. It said total contributions were $167 which happens to be the same amount the Turbotax is telling me to withdrawal. Also, my W-2 on Box 12A "W" has the same amount. Do I really have to take this money out of my account and if so, why?

K

Kiffer3Author

In addition, it looks like only my employer made contributions to my HSA for 2023 and not me. The total amount was $167. TurboTax says it was an excess contribution. That being said, why do I have to take that out before I file my return? FYI, I am contributing to my HSA this year as well as my employer.

L

LeticiaF1

Unless you made additional contributions, the only amount that needs to be entered into TurboTax for the HSA contributions is the amount already on your W2 with code W. Do not enter the amount again.

Here’s how to go back and review your HSA entries in TurboTax:

Open (continue) your return in TurboTax
In the search bar, search for HSA and select the Jump to link in the search results
On the screen Tell us about the health-related accounts you had in 2023, check the box next to Health Savings Account (HSA) and select Continue
If you land on Your HSA summary, select Edit, then make sure the Health Savings Account (HSA) box is checked on the next screen and select Continue. If you see the screen Here’s what we have so far, select Done
Answer No to Did you inherit this HSA?
Do not enter your contribution on the screen Let’s enter your HSA contributions and select Continue
Continue answering the questions until you reach Your HSA summary

Reach back if you have additional questions.

K

Kiffer3Author

Thank you for the reply.

I did as you instructed with the W2 amount in the correct box.

However, I still don’t understand why TT says this is an excess contribution. This was a new HSA set up in October and only my employer contributed which was $167. I put in $0 during that period. That being said, why do I have to take that money out before I file taxes? How is excess? Is TT software wrong?