Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Tax Software HSA Max Allowed
Old 01-20-2021, 05:23 PM   #1
Recycles dryer sheets
 
Join Date: May 2016
Posts: 198
Tax Software HSA Max Allowed

I notified H&R Block about an error and was hoping it would be fixed in their Update released today. It is not fixed. All they said was we'll report it up two levels and take a look. I wonder if Turbo Tax has the same issue. Or perhaps my understanding of the 2020 MFJ maximum contribution is not correct.



Here's the issue: I believe that the 2020 MFJ HSA maximum for two persons that are both 55+ and under a HSA Qualified single Family insurance Plan and each has their own HSA account is $9,100 and simply derived from $7,100max + $1000 catchup + $1,000 catchup. However, the software currently derives the maximum as $8,100 without penalty. I'm guessing it does not recognize that each person has their own HSA account.


Is my thinking correct? Does TT compute it correctly?
CDRE is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-20-2021, 05:50 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 1,128
Did you do a form 8889 for each of you?
jebmke is offline   Reply With Quote
Old 01-20-2021, 06:30 PM   #3
Recycles dryer sheets
 
Join Date: May 2016
Posts: 198
Quote:
Originally Posted by jebmke View Post
Did you do a form 8889 for each of you?
Yes, the H&R Block software has this form for each person but indicates there will be a penalty for going $1,000 over ($8,100). Here's the view:


H&RBlockHSAScreenshot.jpg
CDRE is offline   Reply With Quote
Old 01-20-2021, 06:49 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Mar 2013
Location: Coronado
Posts: 2,264
Yes, TurboTax desktop software computes this correctly. It asks about contributions and health coverage for each individual. I answer the contribution questions as $4550 and $4550 and say that each of us was covered by a family high deductible plan for the entire year. Both 8889s look correct, but they still say "Do Not File" in red, so either the IRS hasn't released the final form yet or Intuit is still verifying their implementation of it.
cathy63 is offline   Reply With Quote
Old 01-20-2021, 07:44 PM   #5
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 353
I thought $8100 was the max family contribution, no matter how many HSA's you have.
Dave J is offline   Reply With Quote
Old 01-20-2021, 08:12 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 1,128
Quote:
Originally Posted by Dave J View Post
I thought $8100 was the max family contribution, no matter how many HSA's you have.
$7,100 for family + $1,000 for each qualifying catch-up so theoretical max is $9,100.
jebmke is offline   Reply With Quote
Old 01-20-2021, 08:17 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 28,369
Quote:
Originally Posted by Dave J View Post
I thought $8100 was the max family contribution, no matter how many HSA's you have.
Thatís the max in a single account.
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 01-20-2021, 08:47 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 4,267
We contributed the family max + $1000 + $1000 into individual accounts for a few years and TT was always fine with it. I was on Medicare in 2020, so just one contribution this time.
Animorph is offline   Reply With Quote
Old 01-20-2021, 09:39 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 28,529
Quote:
Originally Posted by Dave J View Post
I thought $8100 was the max family contribution, no matter how many HSA's you have.
Quote:
Originally Posted by jebmke View Post
$7,100 for family + $1,000 for each qualifying catch-up so theoretical max is $9,100.
Yes... so you could contribute $8,100 to taxpayer's HSA and $1,000 to spouse's HSA or $1,000 to taxpayer's HSA and $8,100 to spouse's HSA or anything in-between.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA TBD
pb4uski is offline   Reply With Quote
Old 01-22-2021, 09:25 AM   #10
Moderator
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 7,808
I think you should check your inputs more closely.


Mine (pre-Jan20 version) allows $9,100.
sengsational is offline   Reply With Quote
Old 01-22-2021, 11:30 AM   #11
Dryer sheet wannabe
 
Join Date: Apr 2015
Posts: 19
Quote:
Originally Posted by sengsational View Post
I think you should check your inputs more closely.


Mine (pre-Jan20 version) allows $9,100.
Mine does also. I have the latest version installed. We have separate HSA's and therefore separate 1095-A's from our HSA provider. Perhaps that is the difference?
toddm is offline   Reply With Quote
Old 01-22-2021, 12:13 PM   #12
Recycles dryer sheets
 
Join Date: May 2016
Posts: 198
Thank you both for verifying the software allows the correct amount. That prompted me to review the inputs. They are correct. It seems something is hung in the software background. (?) I've tried to clear the issue by deleting the 8889's, deleting the 1040, selecting "No" for contributions and then trying inputs again. None of these cleared the issue so I reinstalled the software. Still not resolved. Unless anyone has a suggestion, my next step is to delete the entire return and start from scratch. I already tried to call H&R Block but decided to not wait 30 minutes listening to their trivia on taxes.
CDRE is offline   Reply With Quote
Old 01-22-2021, 03:22 PM   #13
Confused about dryer sheets
 
Join Date: Sep 2019
Posts: 1
H&R Block had the same issue/error last year, which I also reported to them in early January.

I got tired of waiting for them to include the fix in a subsequent update, so filed in late February, manually overriding the error in the respective forms.

Not sure if they fixed it in March as I had already filed.
DAKn2 is offline   Reply With Quote
Old 01-22-2021, 03:34 PM   #14
Recycles dryer sheets
 
Join Date: May 2016
Posts: 198
Thanks. Its nice to know I'm not alone. I'll probably have to delete the Return and start a new file from scratch.
CDRE is offline   Reply With Quote
Old 01-23-2021, 02:33 PM   #15
Recycles dryer sheets
 
Join Date: May 2016
Posts: 198
I deleted the Return and started a new file. Same issue. WTF! I then uninstalled the software and deleted the files. Reinstalled from the original download, updated it to the Jan 4th revision, started a new Return (still importing from last years data) and finally achieved success with the HSA total of $9,100 and no penalty/overage. Success achieved. Whew!
CDRE is offline   Reply With Quote
Old 01-24-2021, 12:42 PM   #16
Moderator
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 7,808
I didn't read closely, but do I understand that the January 20 update breaks it?
sengsational is offline   Reply With Quote
Old 01-24-2021, 02:58 PM   #17
Recycles dryer sheets
 
Join Date: May 2016
Posts: 198
Quote:
Originally Posted by sengsational View Post
I didn't read closely, but do I understand that the January 20 update breaks it?
No it does not. My previous post for the Update should have stated Jan 20 in lieu of Jan 4. Regardless, it seems that something gets hung in the background and just won't clear, or, at least I didn't stumble across the methodology to clear the issue without completely starting from scratch. Maybe I just needed the correct phase of the moon and position of my tongue pointing the way.
CDRE is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
House has passed tax bill - are we allowed to talk about it? Curmudgeon FIRE and Money 2 11-16-2017 09:17 PM
Question about HSA plans, Max OOP, etc rodi Health and Early Retirement 2 01-02-2016 04:26 PM
HSA Max for 2009 Khan FIRE and Money 4 01-09-2010 10:02 PM

» Quick Links

 
All times are GMT -6. The time now is 01:29 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.