2024 Excess HSA

[Bklyn1_241]

Code W on two W-2s for taxpayer total $9,152, which is $852 more than the $8,300 maximum for a family HSA.  Why isn't the excess automatically reported on Schedule 1, Line 8f and Form 5329, Part VII by ATX?  Am I missing something?

[kathyc2]

Over age 55?

[Bklyn1_241]

No, they are not over the age of 55.

[kathyc2]

Unless you indicated somewhere that excess will be removed by due date of return additional tax 6% shown on 5329.  Since the full amount was deducted from W2, excess will be taxable on Sch 1 whether removed or not. 

[Bklyn1_241]

I don't believe I indicated that anywhere because I don't even know where that option is located.  I am at a loss as to why ATX is not automatically reporting the other income and excise tax of 6%.

[gfizer]

Anybody figured this one out yet?  Have a client, age 66, with W2 showing $5700 for employer HSA contributions but ATX isn't calculating any tax on the excess contribution.

[Lee B]

You probably have a worksheet for Form 5329. 

The details flow through Part VII of 5329.

[jklcpa]

2 hours ago, gfizer said:

Anybody figured this one out yet?  Have a client, age 66, with W2 showing $5700 for employer HSA contributions but ATX isn't calculating any tax on the excess contribution.

Is the high ded plan for individual or family coverage? Which box is checked on the 8889?

[gfizer]

On 3/30/2025 at 3:35 PM, jklcpa said:

Is the high ded plan for individual or family coverage? Which box is checked on the 8889?

It is individual coverage

[Lee B]

I use Drake and I had to use a 5329 last week although it was for a premature distribution penalty exception.

I had to click on a link in the 1099 R entry worksheet.