TurboTax Desktop has a bug when it comes to filling up these questions for an HSA, after importing a 2022 tax return that had excess HSA contributions carried over all the way from 2018.
1. Did you inherit this HSA (No)
2. Did you put money into an HSA in 2023 (No)
3. Did you have Medicare at anytime in 2023 (No)
4. Were you covered by a HDHP in 2023 (No)
5. Enter last year's excess contribution, 2022 Form 5329 Line 48 ($100 - this has been carried over since 2018)
6. You may want to withdraw money from your HSA (No)
7. What is the total value of all your HSAs ($XXX)
8. What type of HDHP did you have in Dec 1 2022 (None, HMO since 2019)
With the above answers, TurboTax ends up generating a Form 8889 that populates line 2 (HSA contribution for 2023) with $100 which is the excess carryover from 2022, even though I had answered No to Q2. This then causes Smart Check to fail since it expects a checked box in Form 8889 line 1.
The only way around this issue is to answer Yes to Q2, and in the next page answer $0 to the question on "Excess HSA contributions carryover from 2022 still in HSA account". I verified that Forms 5329 and 8889 are identical pre-workaround and post-workaround, except that pre-workaround fills up Form 8889 line 2 with $100 and expects line 1 to be filled.
Logically, "Excess HSA contributions carryover from 2022 still in HSA account" and Q5 "Enter last year's excess contribution, 2022 Form 5329 Line 48" should have the same value of $100, so this looks like a bug.
I compared the post-workaround 2023 Forms 5329 and 8889 to my 2020 return that also used those forms, and they have the same lines filled up and left blank. So the forms generated by the workaround seems correct.
