HSA excess contribution
After inputting my HSA information in FreeTaxUSA, I get a message that (roughly $950) of my HSA contributions are considered excess contributions. I was told that if you are over the age of 55, you can contribute an extra $1000 a year…which I did. The system doesn't seem to take my age into account. It seems to adjust what my return will be…subject to additional tax. I can't think of a way to get around this without changing the HSA contribution amount that my tax documents show (which I don't want to do). Is there a workaround for this or am I missing something?
Thank you.
Comments
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Hello KyleB_1,
Thank you for reporting this. This feature has been thoroughly tested and I have personally used it without a problem. The first thing I suggest you do is check your birth year on the Taxpayer information page. Make sure your birthyear is correct.
If you still see the problem, please contact Customer Support while logged into your account.
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Hello Matthew,
You are correct. Somehow, my birthdate was completely off. Thanks for pointing me in the right direction!
Take care!
Kyle
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My birthdate is correct and I am over 55 and I am getting the same error for tax year 2025 that I have made an excess contribution. The only way to get the software to work is to reduce my husband's contribution. What gives? How can this get fixed?
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Hi MickeyB01,
Keep in mind there can be various reasons which can trigger an excess contribution. Generally, it has to do with income, and if you participate in an employer retirement plan. We would need more information to determine the reason.
I suggest you contact Customer Support while signed into your account. Someone can help you out to determine the reason for the excess contribution.0 -
I'm facing this exact same problem. Over 55, my husband and I contributed 10,550 in 2025 between our two HSA accounts and FreeTaxUSA is giving an error that we could only contribute 8,550. I'm stuck. Birthdates are correct in system. How did you resolve this?
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Hi WilliamNJ,
Thank you for participating in the community.
This can be a complex issue and without all the details, practically impossible to answer in our community. You obviously know you can contribute an addition $1,000 to each person over 55 years.
When you are entering your HSA contributions, make sure you correctly allocate your limits on the "How should we split the HSA contribution limit?" page. Also, you can contribute to a Health Savings Account (HSA) even if you do not have wages, employment income, or are retired, as long as you are covered by an HSA-qualified High-Deductible Health Plan (HDHP).
I suggest you contact Customer Support so you can have someone review your account and help with a solution.0 -
I had the same problem. The only thing that worked was to divide the $10,550 equally($5,275) between the two of us during the interview part of the section and not wait for the page that asks you divide the total between the two of you . If done this way, that last allocation page didn't appear. I suspect this is a bug in their software.
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