Form 8889 Line 6 Allocation for Family Coverage

[StephSheldon]

I cannot seem to answer the questions correctly to get line 6 to show anything other than $7000 (max contribution amount for family coverage).

Form 8889 (2019) Line 6 reads: Enter the amount from line 5. But if you and your spouse each have separate HSAs and had family coverage under an HDHP at any time during 2019, see the instructions for the amount to enter...

Instructions for Form 8889 (2019) reads: Spouses who have separate HSAs and had family coverage under an HDHP at any time during 2019, use the following rules to figure the amount on line 6.

• If you are treated as having family coverage for each month, divide the amount on line 5 equally between you and your spouse, unless you both agree on a different allocation (such as allocating nothing to one spouse). Enter your allocable share on line 6.

Is there a certain way I should be answering these questions to get my husbands tax return to show $0 or to get both of our tax returns to show $3500? It doesn't matter which one. We had HDHP family coverage every month of the year and we didn't contribute any money to either HSA in 2019; however, leaving it as is doesn't follow the IRS instructions and totals $14000 between the two of us.

Any help is appreciated. Thank you!

[BillM223]

TurboTax will allocate the Family coverage limit between the spouses as needed; there is no direct way for you to do it - and, frankly, there is no reason for you to do it.

Doing it the way we do is indeed following the IRS instructions; it's just that the instructions are less than clear.

Although you have two form 8889s, each with an apparent $7,000 HSA contribution limit, in fact, you don't have $14,000 of limit. This is the price we pay for there being two 8889 forms but only one shared Family coverage limit. It is difficult to represent this in a straightforward fashion.

So just go with the flow - TurboTax is representing your situation in the way that the IRS wants, because we would have heard about it by now if we weren't.