topic TurboTax Business No Form 8889 for 1099-SA paid to Estate in Deductions & credits

TurboTax Business No Form 8889 for 1099-SA paid to Estate

sagnr — Tue, 04 Feb 2020 14:32:17 GMT

I am completing an Estate Return using TurboTax Business. The Estate received a 1099-SA for HSA payout related to decedent. There is no 8889 Form in TurboTax business or place to enter the 1099-SA data. Please let me know if there is a workaround?

Thanks

Neilio

Re: TurboTax Business No Form 8889 for 1099-SA paid to Estate

BillM223 — Tue, 04 Feb 2020 15:59:45 GMT

As you have seen, the 8889 is an individual tax form, not a fiduciary tax form.

The HSA on which the 8889 reports belongs to the individual.

The 1099-SA reports on distributions made from the HSA for the purpose of paying for qualified medical expenses.

The IRS says, "If your estate is the beneficiary, the value is included on your final income tax return." I assume that the beneficiary of the HSA upon the death of the original HSA owner was an estate. This sentence indicates that the reporting of the HSA goes on the last individual tax return filed on behalf of the deceased, not on the estate return.

Yes, the beneficiary (the estate) is permitted to pay out of the HSA any medical costs incurred BEFORE the date of death but paid after the date of death; these amounts reduce the amount of income that the beneficiary must declare upon the date of death of the HSA account owner.

Please see IRS Publication 969.

Re: TurboTax Business No Form 8889 for 1099-SA paid to Estate

sagnr — Tue, 04 Feb 2020 16:41:04 GMT

Thanks very much for the response. I will enter on deceased individual tax return. The issue I had was the HSA was paid to the Estate and the Estate Tax ID Number. I will make a note on the final individual tax return. I very much appreciate your response.

atb

Neilio

Re: TurboTax Business No Form 8889 for 1099-SA paid to Estate

dmertz — Wed, 05 Feb 2020 03:33:45 GMT

"Yes, the beneficiary (the estate) is permitted to pay out of the HSA any medical costs incurred BEFORE the date of death but paid after the date of death; these amounts reduce the amount of income that the beneficiary must declare upon the date of death of the HSA account owner."

Only a beneficiary other than the estate (i.e., a person) can do this. § 223(f)(8)(B)(ii)(I)