If I have an employer contribution of $38 to my hsa account in Januarys paycheck paying for dec but I quit in December. How do I fill out form 8889? None?

[dmertz]

[Edited to reflect that the $38 a 2022 Form W-2.]

If the $38 is for 2021 was reported on your 2022 Form W-2, in the HSA section of 2021 TurboTax you'll need to answer Yes to the question that asks if your employer told you about other contributions to your HSA, then enter $38 in the box for contributions made in 2022 for 2021.

With the $38 included on your 2022 Form W-2, in 2022 TurboTax you'll similarly need to answer Yes  to the question that asks if your employer told you about other contributions to your HSA, then enter $38 in the box for contributions made in 2022 for 2021.

[Opus 17]

@dmertz I'm not 100% sure of this answer.

@rarrjess , start by checking your HSA bank.  When did they record the deposit, in December or January?

Also, can you clarify, did you quit in December 2021 and this deposit is on your 2022 W-2 for you tax return now, or did you quit in December 2022 and this deposit will be on your 2023 W-2 for next tax season?

Also, in the year after you quit the job (when you had the deposit in January), did you or will you enroll in another qualifying HDHP insurance through a new employer?

[rarrjess]

@Opus 17 left the job in dec 2021. The last paycheck was received in Jan 2022 showing a hsa deposit. The hsa online shows the employers deposit of $38 in January 2022. 

my next job did not have a HDHP. 

For the year 2022, I am concerned with form 8889. TurboTax asks me if I had coverage and I select none. But, I’m worried because turbo tax keeps flagging to review the 8889 document.

[Opus 17]

@rarrjess 

Because personal income taxes are on a “cash basis” and the deposit was made in 2022, I think you have to deal with it as a 2022 deposit, even though it was “earned” in 2021.  

I would like to know if @dmertz  thinks there’s another way to view this.  

As a 2022 deposit and you don’t have an HDHP in 2022, it is considered “excess”.  You need to complete form 8889 and you will need to pay a 6% penalty on the excess deposit, unless you spent your HSA and don’t have a balance.  

[dmertz]

I've edited my original post to reflect that the $38 is reported with code W in box 12 of the 2022 Form W-2.  As Opus 17 indicates, for this to be a 2021 treated as contribution you'll want to make sure that the 2022 Form 5498-SA shows this $38 as a contribution for 2021 made in 2022.