So do you have a code W in box 12 on your W-2? If you do, you won't be able to avoid the 8889, because the code W is telling TurboTax that you made contributions to an HSA, which triggers form 8889.
If DFAS indeed withdrew the amount and credited it to an FSA, then ask them to give you a corrected W-2 with the code W removed (and perhaps with another entry for the FSA).
It can happen that because you once told TurboTax that you had an HSA, then TurboTax hangs on to that idea even if you don't have the code W in box 12 on the W-2 any longer. In this case, please do the following:
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***
3. go to View (at the top), choose
Forms, and select the desired form. 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. continue with your return.
