yes. returns can be done manually. be neat because sloppy writing can delay manual processing. you can buy the Turbotax apps for 2018 and 2019. it's just that these TT returns can not be e-filed.
no one can say for certain when the IRS will process a mailed return. The IRS is still behind in processing similar mailed returns for 2020 and yours goes to the bottom of the pile. Ask the pro about when an e-filed return would likely be processed because the IRS may at times shut down its e-filing.
For tax year 2018
If your household income or gross income is less than your filing threshold ($12,000 for single taxpayer), and you choose to file a tax return, check the “Full-year health care coverage or exempt” box on Form 1040 for your tax household. You don't need to file Form 8965.
form 1095-C is for your records. nothing on it is entered in your tax return.
For 2019
For my 2019 tax return, I do have an HSA for part of the year, until I started a job elsewhere, that didn't offer an HSA. I made no personal contributions, only the employer did. You need to file form 8889 for 2019 to show the employer contributions and that there were no qualifying disbursements. the trustee should have sent you form 5498-SA. I did not claim any distributions for 2019 either. In 2020 I did close it out and take the 20% penalty, since the provider began to leveraged various fees.
Anyways back to 2019. Part III line 18, last month rule...
the purpose of THE LMR was to allow a full year's contributions by an eligible individual to an HSA if the taxpayer was an eligible individual on December 1st of the year. contributions for the full year are prorated for each month that on the 1st day of that month you are an eligible individual. (for single individual $291.67/month). But there is a catch. You must remain an eligible individual during the testing period in order to take advantage of the last-month rule. The testing period begins with the last month of your tax year and ends on the last day of the 12th month following that month (for example, December 1, 2019 – December 31, 2020). If you fail to remain an eligible individual during this period, other than because of death or becoming disabled, you will have to include in income the total contributions made that would not have been made except for the last-month rule. You include this amount in income in the year in which you fail to be an eligible individual. This amount is also subject to a 10% additional tax. However, you say you made no personal contributions to the HSA so the LMR would be irrelevant in your case assuming the employer only made the pro-rata contribution or less for each month you were an edible individual covered by its HDHP on the 1st day of the month.
you'll need to complete 8889 for 2020 to report the nonqualified withdrawal.
This shouldn't apply to me since, I made no contributions, and didn't abuse the last month rule. There's also something about the trial period in the instructions. That shouldn't apply to me either right? Guess I also have to fill out Schedule I, and write down a zero in part II, line 12, health savings account deduction. Should I also write zeros on the 8889, where it's needed, or just leave the lines blank?
