To remove excess contributions, complete the HSA Distribution Request form, indicating Excess Contribution Removal as the reason for the distribution request. If you have excess contributions due to a contribution error made by your employer, use the Correct Contribution Error – HSA Distribution Request form instead.

Where do I report excess HSA contribution on tax return?

Excess contributions made by your employer are included in your gross income. If the excess contribution isn’t included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return.

What is the penalty for making an excess contribution to my HSA?

HSA contributions in excess of the IRS annual contribution limits ($3,600 for individual coverage and $7,200 for family coverage for 2021) are not tax deductible and are generally subject to a 6% excise tax.

What is the max contribution for HSA 2020?

$3,550
Consumers can contribute up to the annual maximum amount as determined by the IRS. Maximum contribution amounts for 2020 are $3,550 for self-only and $7,100 for families. The annual “catch- up” contribution amount for individuals age 55 or older will remain $1,000.

When do you have excess contributions to your HSA?

Excess Contributions occur when you contribute more to your HSA than you were allowed. This compares your contribution limit for the year (which can vary on many factors) and the actual amount of money that came into your HSA, including such things as Employer Contributions, Qualified Funding Distributions, and Prior Year Contributions.

What is the maximum amount you can deduct from your HSA?

The excess contribution you can deduct for the current year is the lesser of the following two amounts. Your maximum HSA contribution limit for the year minus any amounts contributed to your HSA for the year. The total excess contributions in your HSA at the beginning of the year.

Can you deduct excess contribution on HSA form 969?

Form 969 states: You may be able to deduct excess contribution for previous years that are still in your HSA.

Can you deduct excess contributions for the current year?

The excess contribution amount you can deduct for the current year is the lessor of 1) Your maximum HSA contribution limit for the year minus any amounts contributed to your HSA for the year and 2) the total excess contributions in your HSA at the beginning of the year.