2025 Ohio MSA Worksheet Error

[Rightfield]

TT is using the wrong value from Federal Form 8889 in the Medical Savings Account Worksheet.  I contributed $25 too much in 2025 and already had the excess contribution withdrawn, so the net contribution, as shown on line 2 of form 8889 is correct, however TT is using the original amount contributed and giving me a $25 MSA contribution as an adjustment to income, which is wrong.

[BillM223]

Did you have a form 8889? Did you have an HSA or an MSA? If you had an MSA, you would have had a form 8853.

Let us know.

[Rightfield]

There are two 8889 forms on our return, 8889-T for me and 8889-S for my wife.  We were covered under a family plan from Jan-June, then me as a single from Jul-Dec, since my wife went on Medicare.  We each have our own HSA accounts, so that we can each make the additional catch-up contribution.   We do not have an MSA account.  Also, we are not residents of Ohio.

[Rightfield]

Is this getting fixed or will I need to override the Ohio MSA worksheet?

[BillM223]

Again, please answer my question above. Form 8889 is used for HSAs, form 8853 is used for MSAs. Which one did you have?

[Rightfield]

I answered your question 3 weeks ago.  It's right there in the discussion.  Do you not see it?

[BillM223]

No, I did not, because this year the tool that we have to use to answer your questions does not display all previous posts like it used to. OK, now that I switch to the Community, I see your response. Our apologies.

But I am still puzzled. In that post that I could not see, you said, " We do not have an MSA account.  Also, we are not residents of Ohio." But in the title of your initial post, you put "2025 Ohio MSA Worksheet Error".

By this did you mean that you are doing a Non-resident Ohio return? Also, were you not aware that the State of Ohio has state-level medical savings accounts (MSAs) separate from HSAs?

What are you referring to here when you say "Medical Savings Account Worksheet"? The Ohio MSA? Because the HSA doesn't have such a worksheet.

Anyway, let's start over and tell me:

1. Do you have the TurboTax Desktop product?

2. If so, were you looking in Forms Mode at something call "Medical Wks" under Ohio?

3. This worksheet is created when you enter numbers into "Enter Medical Savings Accounts Transactions" in the Ohio interview.

4. But if you have HSA(s) and don't have an Ohio MSA, then go back and delete all your entries on the screen referred to on the line above.

Or, to short cut things, go delete the Medical Wks, and see if that clears your problem up.

[Rightfield]

I am using TT Home & Business 2025 Desktop on a Windows 11 PC.

We have to file a return in Ohio due to income from a rental property in that state. 

I did not create any worksheets, TT did it automatically from my 8889 entries.  If I delete the Ohio Medical worksheet, TT recreates it.  The Data Source states: "The amount of HSA contributions on the taxpayer's federal Form 8889 less the amount deducted on federal Form 1040, Schedule 1".

The problem here is that it is using the $25 that was withdrawn as shown on the 8889 Line 2 Smart Worksheet as follows:

A: Total amount of HSA contributions you made for 2025: $5,300

C: Excess HSA contributions for 2025 withdrawn before April 15. 2026: $25

D: Net amount of HSA contributions for 2025 after withdrawals: $5,275

Line 2 of form 8889 = $5,275

[Rightfield]

Just checking.  Did you see my reply from yesterday?

[BillM223]

I saw it just now. And yes I have built a test case that shows that an excess HSA contribution that was withdrawn from the HSA in a timely manner shows up on the Ohio MSA Worksheet as a contribution to a medical savings account, even if you hadn't opened one. 

Yes, it looks like TurboTax is determined to give you a state tax deduction even if you can't use it on the federal level (i.e., the excess HSA contribution cannot be deducted on the federal return, so it is automatically contributed to an Ohio MSA).

I don't see anything in the state documentation that suggests one should do this.

Yes, in the short run, override line 1 on the lower part (Schedule of Adj Lines 6 and 45) of the Medical Wks and set it to zero. In my test, it zeroed out line 2b on Ohio IT-1040, which is what you want, right?

[Rightfield]

Thanks for verifying the issue.  I believe it should be overridden at the source, which is line a on the Ohio Medical Savings Account worksheet.  This will then flow through to line 45 of the Ohio Schedule of Adjustments, which carries over to line 2b of Ohio IT1040.

[Tocard]

I am having the same problem, except I am a resident of Ohio. The manual override did work. But when can we expect a formal fix for this bug?

[BillM223]

Since there is a workaround that works, it is unlikely that there will be a "fix" before April 15th. I cannot say for when it might happen after that.

We Intuit employees in the Community are here solely to answer tax questions, and we have only limited access to problem issue resolution. Please know that I duplicated this issue and reported it, but that in my experience, with us so close to April 15th, issues with an effective workaround have a lower priority.

@Tocard