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EVUser
Returning Member

Smart Check on Form 8889-T: Line 12 Wks, line B

I had TurboTax provide a prompt stating if I withdraw excess contributions before 4-15, it would help my taxes.  I was no longer able get that prompt after hitting Visit All within the 1099-SA section in the Step By Step mode.
 I see it as a line item within Visit All, it iss not available to enter (the field is called: Excess employer contributions withdrawn) but since I entered in this way, it now shows in StepByStep mode:

 

 So I entered the amount I withdrew from HSA on 2/5 of 1056 in Forms mode, on line 12 B of the 8889-T but get this error.

 

Form 8889-T Line 12 Wks , line B, should not be greater than the amount of excess
employer contributions/excess HSA funding distributions. 

It is not  greater than the employer contributions/excess.

1099-SA-Box 1 -4030.17
W2 (Code W) -  5150 for HSA


I had deleted and readd W2, and 1099-SA after seeing a similar answer to a post with this same issue.
The reason I am entering it is because I see:

But you can avoid a tax penalty by withdrawing the total amount of excess contributions from your HSA before the tax deadline.

 

How do I get around this issue as this is an error in TurboTax?

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1 Reply
BillM223
Employee Tax Expert

Smart Check on Form 8889-T: Line 12 Wks, line B

I am having difficulty reading what you have posted (for example, what is "1056"? a year? a form?)

 

However, I see that you have used Forms mode to enter data into the 8889. Please do not do this. Please use the step by step mode to update the 8889.

 

Please note that the 1099-SA simply reports distributions from your HSA, and has nothing to do with your current year excess HSA contributions.

 

I have read your post several times, and I am not sure of your situation. But what I think happened (this is a guess) is that you entered the amount you wanted to withdraw before the due date of the return (April 15th). While the 8889 calculations are correct, one of the issues with the dynamic nature of the screens in TurboTax is that sometimes you can't get back to the screen you want. In this case, it's the screen to change the amount of excess that you want to withdraw before the due date of the return.

 

The most straightforward way to deal with this is to do an "HSA Reset". This is not a button, but a process to clear your return of all data related to the 8889, do you can start the HSA entries afresh. You may have already run across this in your reset.

 

In short, your general process will be:

1. Do the HSA Reset to clear all HSA data.

2. Start to enter your HSA data as if for the first time, only using the Step-by-Step process (not Forms mode).

3. When you get to it, enter the amount of excess that you want to withdraw when you are sure of the amount.

4. Continue with your return.

 

 

*** HSA Reset ***

 

1. make a copy of your W-2(s) (if you don't have the paper copies)

2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen)

 

*** Desktop***

3. go to View (at the top), choose Forms, and select the desired form(s) - 1099-SA (if one), 8889-T, and 8889-S (if one). Note the Delete Form button at the bottom of the screen.

 

*** Online ***

 3. go to Tax Tools (on the left), and navigate to Tools->Delete a form

4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)

 

5. go back and re-add your W-2(s), preferably adding them manually

6. go back and redo the entire HSA interview

7. continue with your return

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