As you, all aware that TurboTax is a tax preparation software that is developed by intuit. This software is mostly helpful for those people who are not aware of how to fill tax. Turbotax software is easy to understand and it helps the users to prepare their taxes by recording their income and expenses on their own. It is very easy to use. But sometimes some error occurs in Turbotax software that affects our work. That is known as Turbotax HSA error.
Turbotax HSA error is that error that occurs when there is some issue in presentation with the IRS form. The error may occur due to you have added or entered some wrong information in IRS form 8889. There might be many reasons due to that error occur.
In this blog, we are going to discuss what is Turbotax HSA error and how to fix Turbotax HSA error.
How its works
In this people allows making an annual tax-free contribution to the medical expenses in the future. They can save some amount of health. In this, some contribution plans are there for individual one can contribute up to $ 3500 and for a family plan one can contribute up to $7000. If your age is more than 55 years then you can extra contribute $1000.
All these amounts are save in a health savings account. Whenever you needed you can withdraw an amount. This withdrawal amount is only used to pay medical expenses. No tax will be charged on that amount.
Everyone can not have health saving accounts. Only eligible candidates are allowed to make this account. Those who are having a medical policy or any other policies are not allowed to make eligible for HSA. If someone is having some serious disease, disability, dental plans, etc are also not eligible for HSA
In what case Turbotax HSA error occurs
Case 1: If you contributed an excess amount
Conditions for charges:
- Fine will be charged.
- If the amount is withdrawn before the filing tax. In that situation, no fine will charged.
- You will charge for other expenses, not for medical expenses.
- There is one particular error that mostly arises when by mistake you double the amount which is already recorded at the first line of HSA.
- In that situation also error occurs when you have not contributed excess HSA and but you are receiving messages of excess HSA contribution then that means you have done something wrong error is from your side. It might be you have written something wrong.
- You must be having some insurance health policy which should be tax-free.
- You must not have any other policy
- Do not claim for someone else return.
Case 2: When you don’t have HSA but still receiving an error of Turbotax HSA error
Steps to delete HSA:
- Firstly make a copy of your w-2(s)
- Now delete your w-2(s)
Online delete an HSA :
- Firstly open Turbotax and then goto the tools
- Now click on the delete a form option
- Detete forms 1099-SA, 8889-T and 8889-S
- Now add your w-2(s)
- At last filing, your return.
Case 3: There is a mismatch in the amount of two forms.
Solution: Error may occur because of the confusing pattern of the form
- Employer contribution and you and your employer have contributed both are treated as the same in a tax return.
- If you contributed directly then that contribution known as a personal contribution. There will be no deletion in salary for the personal contribution with IRS. you can see the personal contribution inline 25.
Now I hope it’s clear to you about excess contribution. I this blog we have discussed different aspects of HSA. hope it will help you in solving the Turbotax HSA error.