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New Member
posted Feb 26, 2026 1:10:38 PM

Form 8889

Same problem reported by other TT users.

Form 8889 Line 16 is zero

Form 8889 Line 20 is blank

Therefore, Schedule 1, Part 1, Line 8f should also be zero.

However, Schedule 1, Part 1, Line 8f (Income from Form 8889) incorrectly shows 333 instead of 0, which gets copied into Form 1040 Line 8 as Additional Income and results in additional tax due.

For help diagnosing the TT problem, the 333 entry may coincide with Form 8889 Line 14b which is 334, which was an excess employer contribution in 2025 that was withdrawn in 2025 and reported on a Form 1099-SA which was entered into TT.  This excess contribution should not be added to "Other Income" because it was withdrawn and was already included on my employer W-2 Form Line 1 as Wages and Income.

 

0 2 339
2 Replies
Employee Tax Expert
Feb 26, 2026 1:48:54 PM

"was already included on my employer W-2 Form Line 1 as Wages and Income."

 

So you are saying that your employer added this excess amount back to Wages in boxes 1, 3 and 5 on the W-2? At the same time, did the employer also remove the excess from the code W amount in box 12 on your W-2? They should have. This is why we are all confused. You can't have the excess added to Boxes 1,3, and 5 and not removed from the code W amount in box 12. 

New Member
Feb 27, 2026 5:31:59 AM

Bill,

Thanks for the quick reply and helping me find my mistake.  With additional research, I now understand that the HSA contributions are excluded from Gross Income and therefore were not included in my W-2 Box 1 Wages and Income.  So that explains why the $333 excess contribution gets included as "Other Income".  Form 8889 still seems confusing since Line 16 shows Taxable HSA distributions as zero, and the instructions say this gets copied into Schedule 1 Line 8f, which is 333 instead of the matching zero.  In the end, listing the $333 as other income achieves the task of getting it added to taxable income.

Thanks again!

Mark