Form 8889

[jsteager]

Line 14 Smart Worksheet Line F.....  Turbo Tax indicates it is an error that has to be corrected if I do not enter an amount greater than Line G.  What amount should it be?  Every amount I enter adds line F and G together  on the IRS schedule, Line 14A, which is an error.   HELP!

[BillM223]

Line 14F is the amount of money that was taken out of the HSA to pay for the deceased's medical expenses within one year of death.

Line 14G is the value of the HSA on December 31, 2025. 

Both of these numbers are entered on the same screen after you indicate that the HSA is inherited.

Is it possible that you find that you are unable to change one of these numbers, when you make changes in the HSA interview on the numbers dealing with an inherited HSA?

[jsteager]

My question had nothing to do with a deceased person.  Sorry if I wasn't clear.  I have a HSA Savings account and am completing form 8889.  On the Smart Worksheet I entered on line A, D and G the amount of $2525 which is the amount of my medical distributions for the year.  Everything was fine until I was reviewing my 1040 return for filing, an error was indicated because I had no amount entered on line F.  I assumed they were asking for the cash balance in my Health Savings account so I entered that amount.  The problem arises then, when I continue into the IRS portion of the form.  These two numbers have been added together giving me a amount that is larger than my maximum yearly donations.  That amount is taxable.  This is incorrect and I don't know how to fix it.  

[jsteager]

Thank you for your help......after your response and after lots of time trying to figure out what was going on, I realized I had indicated in an answer to one of the questions in the step-to-step that I had inherited assets, which I have not.  I changed it, but the numbers were still showed up in the Work Sheet with the total on the IRS document as I described.  Frustrating.  I finally just did an override on the numbers.  Just a note...this is NOT the first time I have been frustrated with the Turbo Tax software.  

[BillM223]

I am glad you are making progress. May I suggest that you try to avoid making entries directly in Forms Mode? Lines F and G for line 14 are generally for people who inherit an HSA but who are not the spouse (spouses don't "inherit " HSAs, rather the HSA of the deceased becomes the spouse's).

If you had gone through the HSA interview and not entered a 1099-SA or if you did, not entered a distribution code of either 4 or 6 on the 1099-SA, lines 14F at least would have had no entry.

Use the interviews in TurboTax to your advantage in those areas of taxation that you may not be well-versed in. Indeed, even many tax professionals are not familiar with the IRS code on HSAs. I as a tax professional use the interview as much as I can, and use Forms Mode mostly for double-checking.

I wish you a good outcome on completing your return.

[jsteager]

Progress?  It did not work.  I can't have an override on an IRS number.  It seems I need to enter an amount on Line G for it to then transfer this information to Line 15.  But,  like I explained before, when I enter the amount on Line G, I am required to enter an amount in line F,  I did not inherit any FSA funds.    

[jsteager]

Distribution code 4 or 6 was not indicated,  Distribution Code 1 was.    The problem is that the distribution amount keeps showing up in this Worksheet.  In going back to the interview, I keep changing an answer to one of the question, but it continues to pop up again.  The question is : Does this situation apply to you?  There are several items listed.  One of the items  is that the HSA was inherited. It indicates I responded Yes to this question.  I did not.   I keep removing this, but it just pops up again.  It won't go away!  

[BillM223 · Accepted solution]

It seems I misunderstood you.

If you made only a distribution, all for qualified medical expenses, then you would not have entries on either line 14F or 14G. That's because the distribution would be found only on 14A (gross distributions) and 14D (Subtract lines 14B and 14C from 14A). 

I just saw your latest post, and indeed it seems you have a "normal" HSA distribution, so only lines 14A and 14D should have entries.

You now may be describing a "stuck" value, that is a value (the HSA was inherited when it was not) that won't go away even when you make other

In this case, I recommend an HSA reset, that is, a process to remove all HSA data (including any stuck values), so that you can start afresh.

Just remove all HSA data as shown below. 

HSA RESET

***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/Windows***

3. go to View (at the top), and choose Forms

4. select the desired form (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 (including adding any 1099-SA back in)....

[jsteager]

I just removed the affirmative answer again....saved it....closed Turbo Tax...opened it up again....and there it is with the affirmative answer that I just removed.   Ahhhhhhh!  I don't really want to mail this return.  This is actually my daughter's return and she is getting a huge refund...

[BillM223 · Accepted solution]

Please try the HSA Reset process; it may save you having to mail this return.

[jsteager]

OMG!  It worked!  Thank YOU so much......