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Deductions & credits
Yes, this is correct.
Blame the IRS. The instructions for line 7 in the 8889 Instructions say to put the $1,000 55+ bump here on line 7 if you have Family coverage.
I believe that the reason for this treatment is so that there is a clear differentiation between the Family coverage limit of $7,000 and the bump, which is $1,000 for each HSA owner who is 55 or over.
That is, if each spouse has an HSA and is 55 or over, then the $1,000 is allocated to each HSA whereas the Family coverage is shared between the spouses. This make it seem like the maximum contribution for these two spouses is $9,000, but it really isn't - it's $8,000 to one HSA and $1,000 to the other.
Actually, you can allocate the $7,000 Family coverage any way you like, so long as at least $1,000 goes into each HSA.
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