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Do I need to fill form 8889? My spouse contributed tp HSA but we were not aware that HDHP is needed for HSA.

So as suggested by TurboTax, we will withdraw the entire HSA contribution before 4/15/2021. Even after opting to withdraw, Turbo tax requires us to fill the form 8889.
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1 Reply
BillM223
Expert Alumni

Do I need to fill form 8889? My spouse contributed tp HSA but we were not aware that HDHP is needed for HSA.

1. Did your spouse contribute to an HSA through his/her employer? If so, the employer could contact the HSA custodian and ask for the money back, then issue you a corrected W-2 that would remove the code W in box 12 on your spouse's W-2. Then the 8889 would no longer be required.

 

2. However, if your spouse did not contribute through the employer (but made direct contributions), then this won't work - also, the employer may refuse to withdraw the money, which amounts to the same thing.

 

3. If you have gotten here, you have to file the 8889, to show that you did not have HDHP coverage.

 

4. Be sure to go through the HSA interview (do a Search (Upper right) for hsa and click on the jump-to link (Mac users must find hsa in the Topics List). Answer the questions as best you can. When you come to "did you have HDHP coverage for at least one month in 2020?", answer NO.

 

Then, at the end of the HSA interview, when you are asked "what type of HDHP coverage did you have on December 1, 2019?", be sure to answer NONE.

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