I’m trying to file my 2024 taxes and the smart check is giving a validation error on form 8889 box 1 to indicate CDHP coverage for myself or family, but I don't have a CDHP.
In 2023 I made excess contributions to my HSA of $509. During they year I changed employment & lost my CDHP, and at the end of 2023 my HSA fund was only $2. My 2023 taxes showed the excess contribution & taxed it as income on form 5329. Note the HSA balance is $0; I lost my $2 due to account fees.
I’m trying to file my 2024 taxes and the smart check is giving a validation error on form 8889 box 1 to "indicate CDHP coverage for myself or family". Again - I don't have CDHP coverage anymore so it should be blank.
Note the excess contribution information was auto populated by TT when I carried over the info from my 2023 taxes.
Back to the 2024 return - if I look at the form view of Form 8889-T, "line 2 smart worksheet", "B-Excess HSA contributions carried over from 2023 that still in HSA" has an entry of $509. That carries down into "Line 2: HSA contribution made in 2024" entry of $509. Also - "line 18 smart worksheet" shows the contributions from 2023 & shows the $509 excess contribution also.
Since I already reported the $509 excess contribution as income in 2023, why is TT reporting it as a contribution that is STILL in my HSA in 2024? It seems like TT is not recognizing that I already paid on the excess contribution in 2023 & that the balance is $0. Please help me understand how to proceed.
