Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

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Pioneer
Posts: 1
Registered: ‎02-04-2018

Help with HSA Ineligible in 2017

Hello,

 

In 2017 I was not eligible for an HSA because I am being claimed as a dependent (I started my job in August, and along with that, my own insurance + HSA). I made contributions, as did my employer. I of course was unaware of this stipulation, so it was a mistake on my end.

 

I filed a form for excess contribution withdrawal, and received everything back as a check to avoid the 6% excise tax on my 'excess contributions.' Now, of course my W-2 still shows these contributions (and my employer will not send a new one, as there are no adjustments to payroll). I filled out the 1099SA and put my excess contributions I received back. However, I fail the Accuracy Review with the following message

You have indicated you can be claimed as a dependent of another taxpayer, please return to the 1099-SA Health savings account interview (in Adjustments and Deductions section) and review all your entries.

 

I understand I need to probably have this excess contribution taxed as earned income. What can I do to pass this accuracy review? 

Esteemed Neighbor
Posts: 198
Registered: ‎02-28-2016

Re: Help with HSA Ineligible in 2017

[ Edited ]

The program 'should' place your excess withdrawal amount on Form 1040, line 21 as income. Form 1099-SA should be code 2.

 

Additional info: There was a problem with the software in the past. I'm not sure if it was ever resolved. I do not yet have the software to test it. Search the forum for "HSA excess" to review old discussions.

Esteemed Neighbor
Posts: 198
Registered: ‎02-28-2016

Re: Help with HSA Ineligible in 2017