How do I fix this? I did not have an HDHP during any part of 2021. Yet TurboTax is requiring that I provide information from form 8889-T that I do not have.

[joelrb]

I do have a new HSA with $300 in contributions and received form 1095-C.

[Opus 17]

Form 8889 is generated by TurboTax from your other information.  If you made contributions to an HSA but did not have a qualifying HDHP, those contributions are disallowed. You must remove the contributions from your account before April 15 and pay income tax on them, or you will pay income tax plus a 20% penalty if you leave the money in the account.

[blobree]

The money was used for a surgury which is a qualified expense.  I have been saving this for several years.  That was the intent of the HSA.  There is less money in the account now than what would be taxable.  Should I be spending the entire HSA every year to avoid this problem?

[Opus 17]

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@blobree wrote:

The money was used for a surgury which is a qualified expense.  I have been saving this for several years.  That was the intent of the HSA.  There is less money in the account now than what would be taxable.  Should I be spending the entire HSA every year to avoid this problem?

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You are responding to an old discussion topic and have not provided any information about your situation or what question you have.  Please ask a question and provide more details. 

[PattiF]

No, you do not need to spend all of the funds in your HSA every year. Form 8889-T is used to report HSA contributions, distributions, and withdrawals. The expenses for surgery would be included as a distribution. You don't receive Form 8889 in the mail or online; it is created by TurboTax as part of your tax return process.

The HSA bank that holds your funds for you issued Form 1099-SA which shows the distributions for the year. That form is entered into your return and TurboTax creates Form 8889-T. The HSA bank should have issued Form 1099-SA to you by now. Check your online account for the HSA bank to access the form. When you enter Form 1099-SA, Form 8889-T will be created.

Form 8889-T is used to report HSA contributions, distributions, and withdrawals. The expenses for surgery would be included as a distribution. You don't receive Form 8889 in the mail or online; it is created by TurboTax as part of your tax return process.

@blobree