topic Re: Form 889 in Deductions & credits

Form 889

landbl1227 — Tue, 10 Feb 2026 09:16:55 GMT

Form 8889 line 116 says "Subtract line 15 from line 14c. If zero or less, enter -0-. Also, include this amount in the total on Schedule 1 (Form 1040), Part 1, line 8f. Schedule 1 (Form 1040), Part 1, line 8f says "Income from form 8889". Turbo tax does not put the correct amount on Schedule 1 (Form 1040), Part 1, line 8f, it's entering a larger number. The lines after line 16 on the 8889 all add up to 0 so there should be nothing else to add.

Re: Form 889

BillM223 — Mon, 29 Jan 2024 18:51:09 GMT

"The lines after line 16 on the 8889 all add up to 0 " - just to confirm, these lines add up to zero, or ARE zero?

Re: Form 889

landbl1227 — Mon, 29 Jan 2024 21:25:22 GMT

They are 0.

Re: Form 889

BillM223 — Mon, 29 Jan 2024 21:33:29 GMT

As you seem to already know, lines 16 and 20 on the 8889 get added together to go on 8f on Schedule 1. But this isn't working for you, since the number in 8f (schedule 1) is not equal to lines 16 + 20 on the 8889.

Unfortunately since we in the Community cannot see your private tax data but know only what you can tell us, I have to start a game of twenty questions.

What is the difference between the amount on line 16 (8889) and line 8f (Schedule 1)? Does this number appear elsewhere on your return?

Let me also assure you that I have been answering HSA questions for 8 years now, and I have never seen this error, so we will be able to work it out.

Re: Form 889

beach_bob_juno — Wed, 05 Mar 2025 18:29:54 GMT

I am seeing the same problem as the OP: having plugged in the numbers from my 1099-SA, form 8889 line 16 calculates to 0. So the zero amount is to be included on Schedule 1 line 8F, but TurboTax is showing the 8f line amount to be $743, not zero. Somewhere during the interview, TT did ask if I had spent this excess amount on qualified healthcare expenses, and I answered yes, because have spent in excess of the $743. Shouldn't line 8F be zero?

Re: Form 889

beach_bob_juno — Wed, 05 Mar 2025 18:31:21 GMT

PS - form 8889 entries 17b through 21 are all blank.

Re: Form 889

BillM223 — Wed, 05 Mar 2025 21:14:45 GMT

As perhaps you have seen in the 1040 Instructions (page 87), line 8f on Schedule 1 (1040) is to be the sum of lines 16 and 20 from form 8889. But in your case, you report that 0 + 0 = 743, right?

As I said, I have not seen this happen before, is it possible that you have made multiple passes through the HSA interview, sometimes showing excess contributions and sometimes not? There is something that happens occasionally in that a number gets "stuck" in TurboTax and doesn't change when other numbers change around it. This creates nonsensical situations where numbers seem to come out of nowhere.

Also, please tell me that you are entering all HSA through the Step-by-Step process, not in Forms mode. Entering data in Forms mode for the HSA can easily lead to errors.

If you are willing, let's do an HSA RESET, to remove all HSA information from your return so you can start over. This is not a button, but a process.

***Reset***

1. make a copy of your W-2(s) (if you don't have the paper copies)

2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen)

*** Desktop***

3. go to View (at the top), choose Forms, and select the desired form(s) - 1099-SA (if one), 8889-T, and 8889-S (if one). Note the Delete Form button at the bottom of the screen.

*** Online ***

3. go to Tax Tools (on the left), and navigate to Tools->Delete a form

4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)

5. go back and re-add your W-2(s), preferably adding them manually

6. go back and redo the entire HSA interview....

Let me know how this works for you.

Re: Form 889

beach_bob_juno — Mon, 10 Mar 2025 17:33:36 GMT

Thanks for the reply, BillM. I'm going to try doing the HSA reset, because I haven't tried that yet... Apologies for the slow reply; I was out of town for a long weekend.

Re: Form 889

BillM223 — Mon, 10 Mar 2025 17:46:46 GMT

I hope you had a good long weekend and that the result of the HSA reset is a clean start that works for you this time.

Let us know how it goes.

Re: Form 889

beach_bob_juno — Mon, 10 Mar 2025 21:07:45 GMT

Ok, the redo:

I deleted these forms: W-2, 1099-SA, 8889-T, 8889-S, and I also deleted Schedule 1 because I had previously done an override on Line 8f that had to be undone.
I then re-entered all the pertinent forms: W2 and 1099-SA.
I am still seeing the discrepancy between form 8889-T, line 16 (= $0), and Schedule 1 line 8f, which is still showing the $743. Sch 1 line 10 total = $743, which carries over to 1040 line 8 (=$743) as additional income.

TT generated 8889-S for my wife, but all the numbers there are zero; she is retired and has no HSA.

Other pertinent info: I retired Nov. 2024, and had single HDHP until that point. I had Medicare for Nov & Dec 2024. I turned 65yo on 9/9/2024.

Form 8889-T amounts:

Line 2 = $0.
Lines 3, 5, 6, and 8 are all = $4292. (Line 3 prorated from the $5150 amount, HDHP for 10 of 12 months)

Line 9 and 11 are both = $5035.

Line 12 = $0.
Line 13 = $0.
[Excess employer contributions TT worksheet above Line 13: A = $743; B= $743 (this amount in blue text, with a clickable detail popup); C = $0]
Line 14a, 14c, and 15 are all = $3086.
Line 16 =$0.
Lines 17 through 21 are blank.

I then clicked on the excess employer contributions TT worksheet above Line 13, item B, and itemized the 2025 expenditures, which totaled $765 (text now in red). This changed the item C to = $-22. Line 13 still =$0. Ran the error check, and it pinged that; so I changed line 13 worksheet item B to $743.

So I still see the disagreement between 8889-T line 16 (=$0) and Schedule 1 line 8f, which is still showing the $743.

Your continued assistance is most appreciated.

Re: Form 889

BillM223 — Tue, 11 Mar 2025 16:13:39 GMT

Thank you for your patience, form 8889 processing is obtuse.

Listen, line 16 is for taxable HSA distributions, not contributions. You entered a 1099-SA, right? It had the amount of $3,086, right? It had the distribution code of '1', right? And because of the '1', TurboTax asked you how much of the distribution was used for qualified medical expenses (and you said all, right?).

So it is correct that line 16 (8889) is zero, because you had zero taxable distributions on the one 1099-SA that you entered. Since the 1099-SA for the excess contributions (which turns into a distribution if the contributions were through the employer) is usually received a year later (i.e., your 1099-SA with $743 in box 1, some unknown amount of earnings in box 2, and code '2' in box 3), should arrive in time for your 2025 return, in early 2026.

Now, I have made some assumptions on what you did; would you please confirm them for me? And does line 16 being zero now make sense?

Re: Form 889

beach_bob_juno — Tue, 11 Mar 2025 18:39:44 GMT

Form 8889 = obtuse... I deleted my opinion on it from my last post; your description is charitable.
😄

Quoting (**):

** You entered a 1099-SA, right? It had the amount of $3,086, right? It had the distribution code of '1', right? And because of the '1', TurboTax asked you how much of the distribution was used for qualified medical expenses (and you said all, right?).

All correct. Except that I have two 1099-SAs, because the employer switched HSA administrators in 2024 (insert eye roll). For the two 1099-SAs, the box 1 amounts total $3086, and are both coded 1. That entire amount was used for qualified medical expenses.

** So it is correct that line 16 (8889) is zero, because you had zero taxable distributions on the one 1099-SA that you entered. Since the 1099-SA for the excess contributions (which turns into a distribution if the contributions were through the employer) is usually received a year later (i.e., your 1099-SA with $743 in box 1, some unknown amount of earnings in box 2, and code '2' in box 3), should arrive in time for your 2025 return, in early 2026.

Understood.

** Now, I have made some assumptions on what you did; would you please confirm them for me? And does line 16 being zero now make sense?

Yes, confirmed as best as I understand. I do not have confusion over why 8889 line 16 is zero ... my confusion comes because the 8889 line 16 instruction says to take that amount (= 0), and include it on Schedule 1 Line 8f (along with any amount from 8889 Line 20, which on my form is blank). But when I look at Schedule 1 on TT, I am seeing the $743 amount. The TT Smart Worksheet above 8889 line 13 shows the excess contributions ($743, item A on that worksheet), and the excess withdrawn after the end of the year ($743, item B on that worksheet), to arrive at item C = zero on that worksheet, so Line 13 = zero.
8889 line 13 does not appear to have anything to do with lines 14 through 16. But that $743 amount is there on TT Schedule 1 line 8f. As it's the same value I am seeing in the Line 13 workup, I'm assuming somehow that line 13 is where Sch1 is finding the $743 that appears on line 8f.

The IRS instructions ^appear^ to allow me to spend down the HSA excess contributions prior to filing for 2024, and eliminate this showing up as additional income. If this interpretation is not correct, please let me know. But my main heartburn still resides with 8889 line 16 = $0, but the amount appearing on Sch1 line 8f = $743, and I still do not understand why. It ^looks like^ a TT software error, but it may be an IRS thing that's completely opaque per any documentation I have seen.

Re: Form 889

beach_bob_juno — Thu, 13 Mar 2025 14:51:53 GMT

Paging BillM223... I am still looking for an answer.

Re: Form 889

BillM223 — Thu, 13 Mar 2025 14:59:06 GMT

Please confirm my assumptions in my most recent post so that I can answer your question.

Re: Form 889

beach_bob_juno — Thu, 13 Mar 2025 15:55:08 GMT

ummm... I did that... Quote from my above comment:

[BillM comment] ** Now, I have made some assumptions on what you did; would you please confirm them for me? And does line 16 being zero now make sense?

[Beach_Bob comment] Yes, confirmed as best as I understand.

Re: Form 889

BillM223 — Thu, 13 Mar 2025 16:06:48 GMT

Listen, line 16 is for taxable HSA distributions, not contributions. You entered a 1099-SA, right? It had the amount of $3,086, right? It had the distribution code of '1', right? And because of the '1', TurboTax asked you how much of the distribution was used for qualified medical expenses (and you said all, right?).

Are all these assumptions true?

I have just come to realize that the HSA Summary for the Online product is missing a line from the HSA Summary for the CD/download product. You have the CD/download version of the product, right? Or are you using the Online product but have paid for your return, so you can see your output forms?

Re: Form 889

beach_bob_juno — Thu, 13 Mar 2025 16:21:14 GMT

Yes, I confirmed all of that in above posts.
I have two 1099-SAs, because my employer switched HSA administrators in 2024. For the two 1099-SAs, the box 1 amounts total $3086, and they are both coded 1. That entire $3086 was used for qualified medical expenses.
I have used the step-by-step process for the HSA portion. I am not entering amounts directly into any forms.
I purchased the download version of TT from Amazon... Amazon did not offer a CD version of TT for tax year 2024. I have updated the app, as prompted whenever I launch the app.

Re: Form 889

BillM223 — Thu, 13 Mar 2025 23:01:46 GMT

"For the two 1099-SAs, the box 1 amounts total $3086, and they are both coded 1. That entire $3086 was used for qualified medical expenses."

Apparently, both HSAs printed 1099-SAs for all the medical expenses, even though the expenses were probably shared between them. Very weird.

Listen, on your 8889, what is the amount on line 12A? It should be the gross excess contributions that should also appear one line 8f on Schedule 1 (1040). Give me the amounts of 12B and 12C while you are at it.

Re: Form 889

beach_bob_juno — Fri, 14 Mar 2025 06:31:25 GMT

Yes, changing the HSA bank was aggravating. There was an overlap when I could pay from the old HSA bank, but a couple months later the new HSA bank got the balance of funds from the old HSA, and I had a new HSA Visa card with the new bank so I could pay copays, deductibles etc.

Anyways, just to be specific, here's the two 1099-SAs:
HSA Bank: Box 1 distribution $54.74. Box 3, distribution code 1. Box 5 account type HSA.

HealthEquity: Box 1 distribution $3030.76. Box 3, distribution code 1. Box 5 account type HSA.
Total of the two = $3085.50 (rounds up to $3086).

On form 8889, there is a TT Smart Worksheet box between lines 12 and 13, titled Excess Employer Contributions. Amounts in that box are:
A = $743; B= $743; C = $0.

Re: Form 889

BillM223 — Fri, 14 Mar 2025 19:08:54 GMT

So the $54.74 was what you spent on qualified medical expenses and the $3030.76 was what was transferred to the second HSA, or were both of these amounts for qualified medical expenses, one from first HSA custodian, and the other from the second HSA custodian? If these were ALL for qualified medical expenses, then just enter them as is (it does not matter that they were from two different HSAs). If the big one was reporting the transfer then go ahead and enter it, lest the IRS complain that they got a copy of a form that you didn't report. As I noted though, the first HSA custodian should not have sent you a 1099-SA for the transfer, if indeed that's what they did. Never mind, just enter it and declare victory.

Line 12 on your 8889 is as it should be. The line 12a amount is what should be on line 8f on Schedule 1 (1040).

So I am still quite confused on why the $743 on line 2a (8889) is not on line 8f (Schedule 1, 1040).

I dug up this old question from you ("TT did ask if I had spent this excess amount on qualified healthcare expenses, and I answered yes, because have spent in excess of the $743. ")

TurboTax asks this question when you enter a 1099-SA, but you didn't have a 1099-SA for $743, so this question must have been asked in a different context. If you enter both of the 1099-S that you just listed, then do say that you spent everything on qualified medical expenses.