Fixed: E-filing Rejection – “Potential issue related to HSA, MSA contributions” on Joint Return

(TurboTax Home & Business)Solution that worked for me:  I had repeated e-filing rejections due to a “potential issue related to HSA, MSA contributions.” No code, just told to fill out the interview again and look for my errors.  The problem only occurred on a joint return where only the spouse had HSA coverage.  Root cause (the bug): On Form 8889S (Spouse’s HSA form), Line 3 Smart Worksheet, TurboTax was:

• Checking the “Family” box at the top, and
• Also filling in the monthly coverage amounts in the Family column below.

This combination made the IRS think there was Marketplace coverage (requiring Form 1095-A) when there wasn’t, causing the rejection. Fix that worked:

1. Switch to Forms Mode.
2. Open Form 8889S (Spouse’s HSA form).
3. Go to Line 3 Smart Worksheet.
4. Uncheck the “Family” box at the top.
   (This also clears the monthly amounts in the Family column.)
5. Manually re-enter the correct full-year family coverage amount in each of the 12 monthly fields in the Family column (match last year’s Form 8889S exactly).
6. Save and close the form.
7. Run Federal Review → State Review → E-file again.

After doing this, my return was Federally Accepted in about 11 minutes after the next hour and the state return was accepted about 8 hours and 43 minutes later.  Note: This seems to happen most often on joint returns where only one spouse has HSA coverage. If you have the same rejection, check Line 3 on the appropriate 8889 form (8889T or 8889S).  TurboTax — please fix this bug in the interview/Smart Worksheet logic.  Hope this helps someone else avoid hours of frustration!