BillM223
Expert Alumni

Deductions & credits

On Medicare, it's not that you are not eligible to have an HSA, you're just not eligible to contribute to it any longer. That is, if you had some money in your HSA when you started Medicare, you could still use that money until it is exhausted; you just can't add to it.

 

However, in this case, it seems that this is your wife's HSA. The company certainly could have contributed money from your income to her HSA, and I assume they did that.

 

Normally, in the W-2 interview (i.e., where you enter the W-2 information) after you enter the W-2 itself, there are two or more screens that ask various questions. One of the screens should ask something to the effect of "Did you put any of your money into your spouse's HSA?"

 

That is, TurboTax sees that you (1) reported an HSA contribution because of the entry in Box 12 with a code of W on your W-2, and (2) are filing married joint.

 

When you see this question, answer it such that you DID put some or all of the HSA contribution into your spouse's HSA. Then some additional lines should appear which ask you to indicate how much of the contribution went to your spouse. Enter the dollar amount, and now TurboTax knows to apply the entire contribution to your spouse. 

 

TurboTax may act as if you have an HSA; if so, just go through the HSA interview and indicate that you were on Medicare. In the same interview, TurboTax should realize that your spouse also has an HSA, and when you indicate her HDHP coverage, then the correct numbers should appear on form 8889 (8889-S in your spouse's case).

 

The HSA interview can be found by searching for "hsa" (without the double-quotes) and jumping to the result.

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