Hsa income allocation worksheet line b should not ...
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Hsa income allocation worksheet line b should not be entered directly on the other income statement error message

For my daughter's NY state tax return I am getting an error message on the Other income statement that "Line 9b should not be entered directly on the Other Income Statement for State Electronic Filing. You should enter the information on the Federal return."  The information was taken from Box 12 (W) and entered into Form 8889. On the other income statement, the amount is showing up in line 9b  which references Health Savings Accounts Form 8889. Not sure how this can be an error since the correct information is coming from Form 8889. Is this an error in the TurboTax program?

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Level 13

State tax filing

It appears to me that line 9b on the New York Other Income statement is actually the amount of any taxable distributions from your HSA. This would usually be on your form 1099-SA (when not for qualified medical expenses), but could also happen if you had excess contributions and you agreed to withdraw them. It should not have anything to do with the code W amount, except by coincidence.

Now, as to your issue, without actually seeing your return, it would be difficult to divine what is happening. But because sometimes TurboTax has an issue with a taxpayer's entries in the issue of excess contributions, I am going to suggest that you delete all your HSA data on the federal return, then re-enter it and then go back to New York input and see if this same error happens.

To remove all your HSA data from your federal return, please do the following:

1. make a copy of your W-2(s) (if you don't have the paper copies)

2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen

*** Desktop***

3. go to View (at the top), choose Forms, and select the desired form. Note the Delete Form button at the bottom of the screen.

*** Online ***

3. go to Tax Tools (on the left), and navigate to Tools->Delete a form

4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)

5. go back and re-add your W-2(s), preferably adding them manually

6. go back and redo the entire HSA interview (be sure to go all the way to the end).

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