I have a question related to Line 1 in Form 8889.
I am on Medicare and my dependent is on COBRA HDHP. I didn't make any HSA contributions in 2023 or 2024 and answered TurboTax questions correctly. However, the excess contributions I made to HSA family in 2022 are getting carried forward to 2023 & 2024 (Form 5329) and I am paying 6% penalty/tax on the remaining excess amount since the current value of the HSA is higher than $0. This part is clear and no issues with it.
Form 8889 line 1, "Check the box to indicate your coverage under a HDHP during 2024". If I don't pick either "Self-only" or "Family" the TurboTax review gives an error message.
Since Medicare isn't a HDHP, though I can use the HSA to pay medicare premiums and deductibles, I am concerned about picking either the "Self-only"or the "Family" option may trigger an audit.
Also, Form 8889 line 2 shows the Excess amount as "HSA contributions made in 2024" which isn't correct either. Since I am on Medicare and my dependent is on HDHP COBRA, we can't make HSA contributions in 2023 or 2024.
What should I do? The IRS instructions don't offer much help with these issues and TurboTax online help and the pop-up explanations within the software package aren't addressing these either.
Please help.
Thank you.
