topic How do I fix this? I did not have an HDHP during any part of 2021. Yet TurboTax is requiring that I provide information from form 8889-T that I do not have. in Deductions & credits

How do I fix this? I did not have an HDHP during any part of 2021. Yet TurboTax is requiring that I provide information from form 8889-T that I do not have.

joelrb — Fri, 04 Feb 2022 15:52:32 GMT

I do have a new HSA with $300 in contributions and received form 1095-C.

Re: How do I fix this? I did not have an HDHP during any part of 2021. Yet TurboTax is requiring that I provide information from form 8889-T that I do not have.

Opus 17 — Fri, 04 Feb 2022 15:57:23 GMT

Form 8889 is generated by TurboTax from your other information. If you made contributions to an HSA but did not have a qualifying HDHP, those contributions are disallowed. You must remove the contributions from your account before April 15 and pay income tax on them, or you will pay income tax plus a 20% penalty if you leave the money in the account.

Re: How do I fix this? I did not have an HDHP during any part of 2021. Yet TurboTax is requiring that I provide information from form 8889-T that I do not have.

blobree — Wed, 05 Apr 2023 16:21:55 GMT

The money was used for a surgury which is a qualified expense. I have been saving this for several years. That was the intent of the HSA. There is less money in the account now than what would be taxable. Should I be spending the entire HSA every year to avoid this problem?

Re: How do I fix this? I did not have an HDHP during any part of 2021. Yet TurboTax is requiring that I provide information from form 8889-T that I do not have.

Opus 17 — Wed, 05 Apr 2023 16:35:19 GMT

@blobree wrote:

The money was used for a surgury which is a qualified expense. I have been saving this for several years. That was the intent of the HSA. There is less money in the account now than what would be taxable. Should I be spending the entire HSA every year to avoid this problem?

You are responding to an old discussion topic and have not provided any information about your situation or what question you have. Please ask a question and provide more details.

Re: How do I fix this? I did not have an HDHP during any part of 2021. Yet TurboTax is requiring ...

PattiF — Wed, 05 Apr 2023 16:46:24 GMT

No, you do not need to spend all of the funds in your HSA every year. Form 8889-T is used to report HSA contributions, distributions, and withdrawals. The expenses for surgery would be included as a distribution. You don't receive Form 8889 in the mail or online; it is created by TurboTax as part of your tax return process.

The HSA bank that holds your funds for you issued Form 1099-SA which shows the distributions for the year. That form is entered into your return and TurboTax creates Form 8889-T. The HSA bank should have issued Form 1099-SA to you by now. Check your online account for the HSA bank to access the form. When you enter Form 1099-SA, Form 8889-T will be created.

Form 8889-T is used to report HSA contributions, distributions, and withdrawals. The expenses for surgery would be included as a distribution. You don't receive Form 8889 in the mail or online; it is created by TurboTax as part of your tax return process.

@blobree