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"It states "Portion of Line B amount to be carried to Line 6 of spouse's form."" - You confused me. I thought you had said that on the 2021 8889 there was a reference to the 2020 8889, but there's not.
"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." - OK, Now I know what you are talking about. Because your husband did not show HDHP coverage for all of 2021, he saw the question, "What type of High Deductible Health Plan did [name] have on December 1, 2020?" You answered "Family", and then you were asked about the "Deduction allocated to spouse". Sorry, I had not realized that you had wandered into that part of the interview. You confused me when I understood you to say that this was on the 8889 but it's not - it's in a part of the interview that most taxpayers don't get into.
OK. I am going to tell you what happened but first I need to point out that there is no such thing as a "Family HSA". Family and Self-only refer to the type of HDHP coverage that you had in any given month. An HSA belongs to the person who opened it (generally, who funded it).
So in 2020, your husband got HDHP Family coverage and opened his own HSA. He was given the benefit of the last-month rule because he had Family HDHP coverage on December 1, 2020, so his annual HSA contribution limit was $7,100. This was conditioned on him staying under only HDHP coverage through December 2, 2021. He contributed $887.
Since neither the HSA nor the insurance were yours at this point, you were not a factor.
Then in September or so of 2021 your husband went on Medicare (I assume his birthday was after August 1). You remained on the Family HDHP policy, and opened your own HSA (remember, no such thing as a "family HSA"). You contributed $8,200 to your HSA in 2021. I do not know how much your husband contributed to his HSA before he went on Medicare - was it perhaps about $2,000?
Please understand that the HSA contribution limits are per HSA and not per person. So your husband's HSA in 2020 had the limit inflated to $7,100 by the last-month rule, and then had it reduced by his "failure to maintain HDHP coverage". Then, in accordance with the instructions laid out for form 8889 , your husband's contribution was re-evaluated for 2020 as if he had not had the benefit of the last-month rule. See the 4 steps under Line 6 on page 5.
I am puzzled as to why you were allocated a share of the Family HDHP limit when your husband could have used it.
Who is the primary taxpayer on your tax return? You or your husband? That is, to whom does the 8889-T belong to, you or your husband?
So, let's do this: on your husband's 2020 8889 (-T? -S?), please tell me the numbers on lines 2-13, and be sure to tell me which 8889 this is.
Sorry, but I still think that there is something I don't know yet about your return.
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