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Get your taxes done using TurboTax
Hi BMcCalpin,
I am in a similar situation where I had an HSA opened this year and my wife still was contributing to an FSA, with an overlap of 6 months.
I took the steps in your message. I chose that I was not covered by a HDHP in 2019 and then put that I will withdraw all of the contributions by July 2020 (I have already sent the form in to my HSA custodian). This ended up decreasing my refund, which I assume is because it changed the HSA contributions to taxable income. A form 8889 was then generated and I was asked to edit it at the end of the tax return. Upon editing it as the software requested, I noted that I had a family HDHP in Dec of 2019. This then caused my refund to go back up again. It is not clear to me whether I should be paying taxes on this money on the 2019 return or the 2020 return (the year that I will receive the check for the excess funds that were invested in 2019). On form 8889, should I try to continue with leaving the health care coverage question without a selection?
I spoke to a turbotax representative in the first place and he ended up pointing me to this message board, so any help would be appreciated.
Thanks!