It won’t let me skip the questions or leave it as “no entry.” I think it’s asking me because at one point during my federal filing, I thought my spending about was an HSA and started answering those questions. Though I went back and changed my answer, so it shouldn’t still be asking me about it.
Make sure that your W-2 form Box 12 does not have an amount with code W. Code W means your employer contributed to an HSA on your behalf.
You need to file Form 8889 to:
If the form doesn't apply to you, delete it.
On the menu bar on the left:
Always use extreme caution when deleting information from your tax return. There could be unintended consequences.
On my W2, Box 12 only has two values: DD and G. There’s also a Box 14 with a Health Care Benefits section in it.
My employer’s benefits website says that our healthcare spending account is tax-free, and my HR dept. told me today that a healthcare spending account is different from the healthcare savings account. I believe what the app is asking for is a savings account, which it seems is not what I have.
I think the 8889 form does not apply to me, so I deleted it. Can you please confirm if this was the right decision?
To contribute to an HSA, you must have High Deductible Health Plan coverage (HDHP). Your HR department should know if this is the case. Then the employer usually helps you open an HSA, although this HSA belongs to YOU, not your employer.
It sounds like you have a Health FSA (ask your HR Department), and not an HSA.
Yes, if this is true, you can delete the 8889. However, that may not always be sufficient.
If the HSA stuff keeps coming back, you should do an HSA RESET to get rid of all HSA data, even some you are not aware of.
***Reset***
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(s) 1099-SA (if one), 8889-T, 8889-S (if one), and 8853 p1 (if one). 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, 8889-S (if one), and 8853 p1 (if one).
5. go back and re-add your W-2(s), preferably adding them manually
6. Now continue with your return.