topic This answer does not fix the error loop. Please advise. in Get your taxes done using TurboTax

Errors on 8889-T when a dependant

sean-meyer2 — Thu, 06 Jun 2019 19:56:52 GMT

I had a HDHP thru employer in 2017. Employer puts $1200 in HSA for me. I am a dependant on parents return. I get error on form 8889-T saying I can't select "self" coverage for HDHP because I am a dependant, even though this is correct. When I remove that it gives me an error saying I have to pick something. It also gives errors saying I must pick coverage for each month but when I select "self" it gives me errors. No matter what I select or don't select it generates errors and I keep going in circles. It will not let me efile. How do I correct this?

If in fact you were claimed as a dependent on someone els...

BMcCalpin — Thu, 06 Jun 2019 19:56:53 GMT

If in fact you were claimed as a dependent on someone else's return, then you were not eligible to make HSA contributions (or your employer, either). Too many employers fail to ask new young employees if they are going to be claimed as a dependent on someone else's return.

If, in fact, you were claimed as a dependent, then you need to do the following:

1. Contact the HSA administrator and ask for the withdrawal of a "Mistaken Contribution". Explain about the employer making contributions when you weren't eligible. If they honor this request, then they will send you a check for the total amount contributed.

2. If you made any payments out of the HSA, then contact your HSA administrator and report a "Mistaken Distribution". This is the amount that you took out of the HSA to pay for medical expenses. Be nice, because they don't have to do this. They will ask you to complete a form and to send it to them along with a check for that amount.

3. When you enter this in TurboTax, report your original numbers (like the amount with code W in box 12 of your W-2). Then indicate that you had "none" for HDHP coverage all year (yes, of course you did, but you weren't eligible for the HSA). This will cause TurboTax to declare all contributions as excess contributions. TurboTax will then ask if you will withdraw the entire excess before the due date of the return. Since you are already working on this (see #1), you answer "yes", and the contributions will be added to line 21 (Other Income) as they should be.

4. Next year (i.e., for tax return 2018), you will probably get a 1099-SA reporting earnings on excess contributions. You will enter that in the HSA interview and be taxed on it (as is right).

This answer does not fix the error loop. Please advise.

captaincofish — Thu, 06 Jun 2019 19:56:55 GMT

This answer does not fix the error loop. Please advise.

Re: This answer does not fix the error loop. Please advise.

Andy1010 — Sat, 29 Mar 2025 04:38:16 GMT

Turbo tax is dumb. Turbo tax 8889-t smart worksheet line 3 doesn't have option to even select if person(single) is covered under parent's coverage or not. How silly?

IRS should/must allow HSA in the student's transition year if HSA contribution is after the 1st graduation year when Parents still claim child as dependent in that year at least 5 months or so. However, I am not sure but there could be more complexity in calculation.

Simple rule of thumb should be - in transition year and towards 1st 4 year graduate degree, IRS should allow HSA contribution. What is the problem for newbies/fresh graduates to start the career with good savings????