So in completing tax return for 24 year old daughter who is claimed dependent on her parents return and was covered under parents HDHP plan as a student during first 7 months of year. She left home and was employed after graduating and enrolled in a HDHP HSA health plan during the last 5 months of the 2023 where she was also taken off her parents HDHP plan. She must fill out form 8889 as she had distributions used with her HSA towards eligible medical expenses and also contributed monies towards the plan with payroll deduction. Question 1 to indicate coverage under a high-deductible health plan (HDHP) during 2023 is answered as "Self-only" checked. Line 2 we added the amount she had contributed for HSA during 2023 which also was shown on W2 Box 12c Code W. So per IRS rules with HSA, if you are claimed dependent by another you cannot contribute tax free to an HSA such she will now pay taxes on her contributions as they were income. All is okay with this except Turbo tax will not allow us to accurately complete Line 3 Smart Worksheet for January to December as it only accepts "None" ( which is directed towards individuals covered b y Medicare). We believe she should answer Line 3 Smart Worksheet Lines 8-12 as "SELF Only". Once Smartsheet is filled None for all months, error is cleared and return may be filed. Any ideas on how to resolve this with honest filing?
