Can 1040NR with HSA contributions be calculated without including HSA contributions and filing a separate Form 8889?

[adityaady]

I am filing a 1040NR and have HSA employer contributions (Code 12 W). I have used a software (Sprintax) to calculate my federal taxes without Code 12 W as it is not supported. I have done the Form 8889 separately and it shows that I have not exceeded the contribution limit. So, is my federal tax document from the software still valid to be filed?

[dmertz · Accepted solution]

There are no differences on your Form 1040NR with or without this Form 8889 since lines 13, 16, 17b, 20 and 21 should all be zero on your Form 8889.  You can safely attach Form 8889 to your 1040NR tax return prepared with other software and mail the entire package.

[BMcCalpin]

No, you cannot file a separate form 8889. You will have to amend your original return to add the 8889.

Since you had contributions to the HSA, the IRS requires you to complete and attach a form 8889 to your return. If you don't include it, the IRS assumes that all your contributions and distributions are taxable.

This will cause the IRS to send you a letter asking for the completed 8889 or for an amended return with the 8889 or for just the tax with possible penalties and interest.

If you entered a deduction on line 25 on the 1040 for your HSA contributions, you can expect a letter pretty quickly asking you for the 8889.

However, if you made no such entry on line 25, it will take the IRS longer to compare your W-2 and other data and realize that you should have filed the 8889 with your return. In this case, their letter may include a request for taxes, penalties, and interest.

Filing your amended return quickly will help cut that off.

Next year, please use tax software that supports the 8889, and file everything all at once.

[dasa0201]

Can you recommend a tax prep software for NR which incorporates HSA contributions. The common Non-resident tax prep softwares such as Glacier and SPrintex do not incorporate HSA.

[sheetalmjkrishna]

Hi, I'm in the same situation right now. What did you end up doing?