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April 20, 2021
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Withdrew HSA Excess Contribution, do I need a new W2?

  • April 20, 2021
  • 1 reply
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Turbotax told me I had an HSA excess contribution during 2020 which was correct, so I withdrew it and the earnings through my HSA provider before the 2021 tax deadline and told Turbotax I had done so. Since my employer contributes to my HSA through a match and the HSA is deducted from my payroll biweekly, do I need to report this to my employer to update my W2? Or is that all done behind the scenes in Turbotax and as long as it's reported to HSA/TurboTax and withdrawn I can finish filing my taxes without updating my W2 or anything else? The box 12 on my W2 right now has the original amount I contributed to my HSA before I withdrew the excess. Thanks! 

    Best answer by Opus 17

    Your W-2 doesn't change.  The excess is reported on form 8889 and is added to your taxable income automatically. 

    1 reply

    Opus 17Answer
    Employee
    April 21, 2021

    Your W-2 doesn't change.  The excess is reported on form 8889 and is added to your taxable income automatically.