BillM223
Expert Alumni

Deductions & credits

No, this case is a rare exception that I don't believe TurboTax supports.

 

First, note that the instructions for Line 3 on page 4 for form 8889:

"4. If you were, or were considered, an eligible individual for the entire year and you changed your type of coverage during the year, enter on line 3 (see (6) in this list) the greater of: 

a. The limitation shown on the last line of the Line 3 Limitation Chart and Worksheet (in these instructions), or 

b. The maximum amount that can be contributed based on the type of HDHP coverage you had on the first day of the last month of your tax year.”

 

Note the underlined phrase: the GREATER of the normal coverage (if you had it all year) and your calculated coverage (if your coverage changed during the year).

 

There is the Line 3 Limitation Chart and Worksheet on page 4 of the 8889 Instructions (this assumes that both spouses were 55 before January 1, 2021 AND that the taxpayer switched from Self-only to Family coverage on or before November 1, 2021:

 

                              You                                  Spouse

January           300.00                                  600.00

February        300.00                                  600.00

March             300.00                                  600.00

April                300.00                                  600.00

May                 300.00                                   600.00

June                 300.00                                   600.00

July                  300.00                                   600.00

August            300.00                                   600.00

September     300.00                                   600.00

October          300.00                                  600.00

November                                                     600.00

December                                                      600.00

bonus            1,000.00                                 1,000.00

subtotal         4,000.00                                8,200.00

total                12,200.00

 

Other notes:

1. This calculation is predicated on the note on page 5 (Step 4) in the instructions for the 8889, that makes it clear that the calculations change when the marital status of the taxpayers changes.

2. You don't share any of the Family limit of $7,200 because it was all allocated to your spouse.

3. Please check my arithmetic.

 

This means that your excess HSA contributions are actually only $275, because you get to count most of your Self-only coverage. Note that now that you are married, you will not be able to do that going forward (like for all of 2022 and beyond).

 

Since TurboTax does not support this situation, it assumes that you are both maxed out to the same 7,200 plus 2 x 1,000. 

 

Are you using the CD/download software or the Online product? If you are using the CD/download software, you MAY be able to override the entries on the 8889 and perhaps on other forms), but I won't guarantee it. Furthermore, if you are able to do the overrides, I can't guarantee that you can still e-file.

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