Hi Billm223,
Thank you for your response. In 2019 both my spouse and I had HSA's through our employer. When I review the HSA summary in Wages & Income in TT 2019 it shows $2,806 in Total Distributions, $0 in Taxable Distributions, $3,500 in Tax Free Employer Contributions for my spouse. It shows $1,911 in Total Distributions, $0 in Taxable Distributions and $2,310 in Tax Free Employer Contributions for myself. Neither of us made any contributions on our own to our HSA and we both were covered by a HDHP all of 2019. I also looked and there was no form 5329 generated on 2019 tax return. When I transfer my info from 2019 to begin my 2020 return I immediately show $204 Federal Tax due. On Form 1040 line 8 "Other Income from Schedule 1, Line 9" it shows $2,042. When I look on schedule 1 line 9 it says Form 8889 Health Savings Accounts and has an entry of $2,042. There is already a Form 8889 generated in my name that shows line 18 $2,042, line 20 $2,042 and line 21 an additional tax of $204. Any idea why this is being generated when 2019 return does not show any excess contributions via form 5329?
Thanks for your help!
