April 13, 2021

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How To Fix TurboTax HSA Error?

TurboTax HSA Error

In case you are receiving TurboTax HSA Error in your PC, it means there is some issue in the presentation of the IRS form. Besides, it might be possible that the error occurred due to adding wrong or additional information in your IRS form 8889.

However, there are various conditions of the specific error that generally TurboTax users confront. We also provide you software development services.

Conditions of TurboTax HSA Error 

These are the conditions of the TurboTax hsa error that usually its users come across:

Condition 1- Why TurboTax is showing an excess HSA contribution in 2019?

Solution- The total amount that you an employer can contribute to the Hsa account is $3,500 for an individual plan. Besides, for the family plan, you can contribute $7,000. In case your age is 55 or older, you need to contribute up to $1,000 for a maximum of $ 4,500(individual) and 8,000(family).

  • The penalty will be charged in case you made an additional contribution to your HSA. You will not be charged if it is withdrawn before filing the tax return. Most importantly, you will be charged extra other than medical.
  • The specific error is very common and usually occurs when you accidentally double the amount which was already reported in the beginning or in the first line of HSA contribution screen i.e Box 12 of your W2.
  • If you have contributed excess but still you’re getting the excess HSA contribution message, then it is because you are not eligible. It might be possible that you have answered the eligibility questions incorrectly.

You need to read these points to check the HSA eligibility requirements:

  • Make sure that you enrolled in a high deductible health plan.
  • Don’t enroll yourself in medicare or additional secondary health insurance policy.
  • You cannot claim somebody as a return.

Condition 2- I am receiving an error of TurboTax which says my spouse or I have an HSA.

Solution- In case you don’t have an HSA (or the code W in box 12), you need to follow these steps to delete all HSA data:

  • Initially, you need to make a copy of your W-2(s).
  • Now, you have to delete your W-2(s).

Desktop

  • You need to go to view options and then select forms. You need to click the desired form.

Online

  • First, you need to go to Tax Tools and then go-to tools. With this click on delete a form.
  • Next, you need to delete forms 1099-SA, 8889-T, and 8889-S.
  • You need to then re-add your W-2(s).
  • Finally, you can continue with your return.

Condition 3-

I am confronting an issue in form 8889 (HSAs). TurboTax is showing a different amount on my form 1040 line 2 (“Health savings account deduction”) and Form 8889 Line 9 (“Total contribution made in 2018”). The contribution amount in TurboTax is not added by me.

Solution- The error has occurred due to the confusing pattern of the IRS form 8889

  • Firstly, the term ‘employer contributions’ refers to the amount that you and your employer have contributed to the Hsa. And, these two contributions are treated the same in your tax return.
  • Secondly, if you make any contributions directly to your Hsa it will be referred to as personal contributions. To be clear, any deduction from payroll is not a personal contribution in accordance with IRS. Your personal contributions will be visible inline 25 on schedule 1.
  • Thus, your line 2 (your personal contribution) and line 9 (your employer’s contribution and your contribution through payroll deduction) are correct, if not given.

Conclusion

After reading this blog, we hope that resolving the TurboTax hsa excess contribution error will not be an issue anymore. It is expected that you have got an idea of the error occurrences. The blog has presented different conditions of the software’s error and its solutions accordingly. Hopefully, the blog solves the purpose of related errors with TurboTax software.

If you are still facing TurboTax HSA Error, then you need to dial the Toll-free TurboTax Phone Number 0120-4380777.