"Are you saying that on the 2021 8889 there is a line referring to your spouse's 2020 8889? What line are you referring to?" Yes, It is actually item "C" on the Line 6 Smart Worksheet for both the 2020 and 2021 Forms 8889. It states "Portion of Line B amount to be carried to Line 6 of spouse's form." On my 2020 return, Turbo Tax allocated $7100 to me. As a result, when I am filling out the Step by Step on 2021 Turbo Tax it asked me questions about how much my husband contributed in 2020 and below that it showed that the "Deduction allowed to spouse" (me) in 2020 was $7100.
"The $1000 "bonus" gets prorated just like the annual HSA contribution limit, if that is applicable." Yes, of course, you are right. He only had his HSA account for Nov and Dec. of 2020 so I believe that means he could contribute only $167 for the year ($1000 x 2 months and divided by 12). Yet Turbo Tax is saying the entire $887 must be counted as income in 2021 and we are getting charged a 10% fine on top of that. Why is he being penalized for the full $887?
Also, the bigger question is why can't I amend our 2020 return to show that less funds were allocated to me in 2020 since I didn't make any contributions that year anyway?
"So on what day did you two get HDHP coverage in 2020? The day is important because the insurance you had on the first day of the month determines your coverage for the month.) We both got HDHP coverage on October 1, 2020.
"How much did you contribute in 2021? (I see that it was zero in 2020.)" In 2021 I contributed zero to my husband's family account. His family account is still open but he stopped contributing to it after July 2021 because he turned 65 in Aug. 2021. His last contribution was in July 2021. However, I remained on an HDHP plan and I opened my own family HSA account in September of 2021. I contributed $8200 to my family account in 2021. Turbo Tax 2021 notified me that I had over-contributed by $1192 for 2021 so I requested $1192 back from my HSA before 4/18/22.
Thank you for your help!
