Need help regarding remediating excess contribution into HSA

[Neeraj]

First of all I’d like to start by saying, I’m a newbie at filing tax returns. I have filed tax returns using Liberty Tax and H&R block for the last 7 years of my time here in the US. Unfortunately, this year, I forgot to file to my taxes till the last minute, so I had no choice but to file it all myself using turbotax.

I finished filing, however I realized I made a mistake.

For 2018 I had a gross distribution of 3575 for medical expenses. I contributed 4000$ from my own pocket. I did it to pay for my insurance deductible medical expenses via HSA to get a tax refund. I didn’t realize, at the time, that 3450 was the max contribution one could make in a year. So I had an excess contribution of 550. There was no contribution from my employer.

When I filed my taxes, I filled that I will return excess contribution of 350, because that was the amount left in my HSA account after payment. However, I didn’t get it done before tax filing today, because you have to do it via mail and it cannot be done online.

So my tax filing is wrong. How do I re-mediate this issue? Can I file an amendment after contacting the hsa company for returning my excess contribution of 550$? Would that solve the problem?

Also, how does it affect my state tax return? While filing for iowa state tax return, the 3575 amount was also included in some income sources section. Can’t remember the name exactly.

Sorry if I’m not able to use all the proper technical tax form information, but I would like get some clear cut information about how to proceed so I don’t get audited or penalized. I read online that until I fix the excess contribution I will have to keep paying the 6% penalty every following year.

[Neeraj]

@igmr-admin : Delete thread please for privacy reasons.

[Author]

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