BillM223
Expert Alumni

Get your taxes done using TurboTax

"Bill, if I understand correctly, you are saying that each year from now on this will be consider a rollover by the IRS."

No, that is not what I said. I said that the amount that is carried over is considered a "carryover", not a "rollover". You quoted the text on Line 2 (8889) to note that rollovers should not be on Line 2, therefore TurboTax is doing it wrong, but that is not the case, because a carryover is not a rollover, as the IRS uses these terms vis-a-vis form 8889 and excess contributions.

 

"If you represent Intuit TurboTax and will stand behind the software, "

To use the legal phrase, "I am not a corporate representative of TurboTax", and cannot answer for the company. A lawyer will understand this.

 

"This has never been an issue with the TT software for the past 5 years"

For years (perhaps 5 or more), TurboTax has been putting the carryover invisibly on Line 2 of the 8889 because the IRS had never put in the instructions where to put the carryover (and hasn't yet so far as I can see). Putting it invisibly on line 2 made the rest of the numbers on the form work, even though it led to the odd situation where the calculation for line 13 appeared to be wrong occasionally. Line 13 is supposed to be the smaller of Line 2 or Line 12. But when Line 12 had a value and Line 2 did not appear to have a value (because the carryover was invisible), then Line 13 appeared to wrong but it actually wasn't.

 

To my knowledge, the IRS had never complained about this arrangement, and I have been answering HSA questions here on the Community (and its predecessor AnswerXchange) 8 years. It did not change until this year, when the IRS decided to put a check in the e-file process to require Line 13 to be calculated based on what prints on the 8889. This caused a number of returns where there was an HSA carryover to be rejected by the IRS, which had never been rejected before.

 

So TurboTax had to quickly implement a change in how it printed the 8889, which ended up causing at least an additional issue with the 5329, so there had to be at least one more change.

 

"My concern has always been the instructions for line 2 on form 8889 say "HSA contributions you made for 2023.""

Yes, the instructions say that, but the IRS now in essence requires that we add carryovers on Line 2 by rejecting returns where the carryover is not added to Line 2. 

 

 

 

Why are you amending your 2023 return? 

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