maw10401
Level 2
03-24-2021
06:55 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Taxpayer contributed too much to HSA. Distributions reported on 1099SA includes withdrawal of excess contributions. How do i enter this in Lacerte to avoid penalty on excess contribution and show it was withdrawn?
Labels
maw10401
Level 2
03-24-2021
07:20 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I figured it out. You need to enter the excess contribution as withdrawn on screen 32.1 on excess contributions withdrawn by due date. Then enter a 1 on the same screen about 8 lines lower that says "1=reduce distributions by excess contributions withdrawn". This will eliminate the form 5329 and penalty calculation and include the excess being withdrawn on form 8889 line 14b reducing the HSA distributions by the excess contribution withdrawn.
