Excess HSA Contribution for "single" filer with HDHP family plan covering a child

[J S]

There seems to be a BUG in 2023 TurboTax Premier:

For a “single” filer with $4,500 HSA contribution under a HDHP family plan covering a child, the software keeps indicating an “excess contribution” of $250, which doesn’t seem to be right.

[Opus 17]

If you have a workplace plan, it is reported on your W-2 only.  Later in the HSA interview, only enter additional out of pocket contributions that you made directly to the HSA bank not through payroll.  If you enter workplace contributions here, they will be double counted and you may get an over limit error; you would also be getting a deduction that is not allowed.  The HSA contributions via payroll were already removed from your box 1 taxable wages, you can't deduct them again.   

Although I can't see your return, one way to get a $250 "excess" calculated from a $4500 contribution is if you are over age 55, covered by a family HDHP, and entered the contribution twice.  That would be $9000 minus the over-50 limit of $8750 equals a $250 excess.

[J S]

Thank you so very much for the quick response.  Yes, I'm over 55, have a HDHP thru workplace, the question in TurboTax is "Any contributions you personally made (not thru your employer)", I put $4,500 (thru payroll deduction).  That caused the "excess contribution" msg, isn't it?

[Opus 17]

---

@J S wrote:

Thank you so very much for the quick response.  Yes, I'm over 55, have a HDHP thru workplace, the question in TurboTax is "Any contributions you personally made (not thru your employer)", I put $4,500 (thru payroll deduction).  That caused the "excess contribution" msg, isn't it?

---

Yes, that is your mistake.  All payroll contributions, whether from your or an employer match, are considered "through your employer."  Remove that extra $4500. 

[J S]

Greatly appreciate your time and help!

[Mike9241]

payroll deductions are contributions made through your employer

[J S]

Got it, thank you very much!