How do I roll forward excess HSA contribution

[msindc1]

Folks:

When taxpayers make excess HSA contributions, they can roll them forward to the next tax year.  But how is that done in Lacerte?

Micah

[dkh]

Are you looking for where to a) enter excess from 2022  or b) how to rollover 2023 to 2024 ?

a)  Enter on Carryover Worksheet - Excess Contributions

b)  doesn't  F8889 automatically calculate the excess and carryover if you don't enter a withdrawal of excess amount 

[msindc1]

😧

Client overpaid HSA in 2023 (he changed jobs and both employers made contributions).

I don't believe that 8889 calculates the excess or the carryover.

M.

[qbteachmt]

Why not remove it before the tax filing? Then there is no penalty; only taxable income.

And does the employer know not to overpay this year, if they leave it ride, or will that become a cycle of overpayments? Sometimes it's easiest to clean up a mess.

[msindc1]

Yes, I agree that that is the better choice.  But it is not my choice to make, it is the client's, which puts me in the position of asking the question I have asked!

[dkh]

There is a section on the Carryover worksheet for HSA excess contributions and it is a program calculated amount which is coming from the F8889 .... I tested it.     

Have you looked at the clients Carryover Worksheet to see if there is an amount  ?