Form 8889 Line 2 Smart Worksheet Confusion

[dmlaprevote]

I'm not a tax expert.  I'm depending on TurboTax to ask me questions and then fill out the forms so my taxes will be calculated correctly.  Form 8889 Line 2 Smart Worksheet auto-filled with $570 and implied I overpaid this amount into my HSA in tax year 2023.  I don't think this is correct.  During 2023 when I became ineligible to contribute anything more into my HSA, I stopped.  Where is this $570 coming from and should I replace this dollar amount with zero to correct my forms?

[KeshaH]

If you'd like, we can look at your return and see exactly what you see to  help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

• Click on Online in the top menu of TurboTax Desktop for Windows
• Select 'Send Tax File to Agent'
• Write down or send an image of your token number and state then place in this issue.
• We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all other states, if any, that are included on the return.

[dmlaprevote]

What is my "token" and where do I find it?

[BillM223]

No, do not enter zero on your forms - the line 2 entry is more likely to be correct than not.

You say that you became ineligible to contribute to an HSA during 2023 - this is exactly the reason why many people have excess SA contributions.

Tell us what type of HDHP coverage you had in 2023 and for how many months (NOTE: what matters is the coverage on the first day of the month, and any month in which you had conflicting coverage (like Medicare) is counted as NONE for HDHP coverage).

Also tell us how much you and any one else contributed to your HSA for 2023.

I think that will quickly show why this $570 appeared on line 2 (8889) on your 2024 return.

[PatCS]

Similar story but no excess contributions:

Turbotax 2024 showed an 'excess 2023 contribution' in the interview.  Since we made no excess contributions ( confirmed from 2023's federal carryover worksheet line 11 a & B as well as the $8500 on 2023's Form 8889 - Family over age 55) and were covered by insurance all year, I erased it.  Looking at 2024 tax form 8889 line 2 smart worksheet,  ( Line B) the full text reads "Excess HSA contributions carried over from 2023 that still in HSA."  The sentence is missing a verb so I am wondering if it meant how much remained in the HSA because we did not use any of it that year, and maybe it's not about "excess?"

I'm concerned about changing something TT filled in for me.  If I go back in the interview now, it skips that step.

Was I wrong to delete it?  If so, how can I correct it?

Thanks!

[KeshaH]

That question is indeed asking if you had any excess contributions that you didn't withdraw from the account. If you didn't have any excess contributions from 2023, you can leave this blank.

[PatCS]

Thank you for the confirmation.  It makes a significant difference in my return.

[KeshaH]

You're very welcome!