[Brittney]

Turbo Tax and “Over-funded HSA”
Trying to do taxes. I had an HSA for all of 2024, with kids on the plan. Like always, I contributed $4,500. Well below the limit.

Turbo Tax system is saying I over-funded it and that I will be taxed 6% on the $4500 unless I withdraw the funds by April 15.

I know I did not over-fund.
I think it must be a software error and I will try to call them tomorrow. But has anyone else dealt with this?

If I just proceed, will anything flag on my tax docs that Turbo tax spits out?

[Catherine]

This happened to me on Friday. It wasn’t until the very end that it realized I hadn’t over contributed to my plan.

It was really frustrating me because the whole time it said I owned $2500 because of penalties.

But I’m going to use someone local instead of turbo tax because I don’t trust it after that.

[Jim]

I had an issue last year. My husband is on my health insurance and we have a HDHP/HSA.

I somehow clicked the wrong checkbox under his entry and we (temporarily) owed a WHOLE lotta money.

Ran back through and figured out how to say he was covered the entire year and on my plan and fixed it right up

[Shirley]

If you can’t figure it out, try calling the turbo tax support line. I’ve found they are very helpful at answering these kind of questions and they can link up to view your specific turbo tax

[Rick]

Two ideas to check.
First, Did you enter it as part of your w2 and again as a direct from you to hsa contribution.

Second, did you check that you stated you were covered by hdhp all of the year or all 12 months?

[Stephanie]

Don’t file on turbo tax! There are other services that are free for basic federal returns. OLT and others, I believe you look on irs-dot-gov to see which to file with.

Turbo tax has done lobbying to make taxes harder to file so they can earn more money.

Why pay to file your taxes? Especially when the software is wrong?

[Gerwyn]

It was double entered. Happened to me several times on the other section of the return.

I used TurboTax for over 10 yrs now and I can’t be happier.

[Stacy]

The Family Plan contribution limit was $8,300 for 2024 Go back through the HSA section in the W2 entries and the Deductions again.

Make sure you answer all the questions correctly – especially the ones where you were covered all 12 months by a family plan.

[Jeff]

Are you sure your Healthcare plan is HDHP, or perhaps TurboTax doesn’t realize it is?

[Heather]

I’ve had trouble with TurboTax in the past too, with them telling me I owe on things I don’t and not giving me deductions that I should have. Switched to taxfreeusa last year.

It’s more work as you have to enter everything manually, but I haven’t noticed any errors so far. As for your specific issue, there is a way to see the actual forms instead of the interface.

Find that and go to the form you’re having trouble with, and make sure all the correct boxes are checked.

It was telling me that we owed money on a scholarship because my daughter didn’t go to college, but she actually did.

I had to go find the form and check the box that said she was in college, even though in the questions it asked me I already said she was.

I tried calling and they were no help at all so I had to figure it out myself.

[Shruti]

Where you enter hsa it asks if you contributed additional to what is in your W2. Many times people mistakenly add whole amount again there…just check once.

The numbers should come from w2 (if you have truly not had any other contribution except via paycheck).

Also make sure you selected “I was covered under family hdhp plan for the entire year ” options not the single plan

[Author]

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