I forgot to report my HSA distributions used to pay doctor bills when you efiled my return which has been accepted by IRS. These distributions will not affect what I owe

[Richard499]

May I mail in Form 8889 to report the distributions?

[Rachel_W · Accepted solution]

Once the IRS has processed your Tax Return and you have received your Refund, you will need to Amend your Tax Return to include Form 8889.  

You will report your HSA distributions on Form 8889 and deem which portion of the distributions were for Qualified Medical Expenses.  If 100% of the distributions were for Qualified Medical Expenses this will have no effect on your refund. 

If you do not Amend and file Form 8889, the IRS will deem all of the HSA Distributions as non-qualified and will add them to your Taxable Income.  Basically, filing Form 8889 lets them know the HSA Distributions were a non-taxable event.

See TurboTax FAQ below on how to amend your return:

https://ttlc.intuit.com/replies/3288565

[Richard499]

I owe and have set up an auto payment. Do I wait until that payment has been made before I go into Turbo Tax and amend?

[Rachel_W]

Yes, I would recommend that you wait until everything is fully processed by the IRS, including your payment.

[ageofconner]

What happens if I never filed my IRS form 8889 from 2020? And never amended it?

[anshnasta96]

I am in the same situation. I did not even know this form existed until today. I was a non-resident in 2020 and used Sprintax to file my returns.

I am a resident in 2021 and was filing my taxes on Turbotax today - that's how I found out I am supposed to have an 8889 form.

[JohnW152]

First, make sure that you actually needed to file Form 8889.  Please see Who Must File in the 2020 Instructions for Form 8889.  

If you were required to file it, then you’ll need to amend your return to include the information.  Please see the TurboTax Help article How to amend (change or correct) a return you already filed for instruction on how to amend your previously-filed tax return.

@ageofconner
 

If you need to amend last year’s return you’ve already filed with Sprintax, please see their How to Amend an Incorrect Tax Return You Already Filed page for guidance.  

If you’ve already filed this year’s resident return without reporting required information on Form 8889, please see the TurboTax Help article How to amend (change or correct) a return you already filed. 

@anshnasta96