HSA for spouse reported on W2 with other's name

[burger_boy1]

Received W2 from company I retired from,  showing HSA deposit for my wife's HSA.  Her name is not on the W2.  I am on Medicare and she is still on my employer insurance so they contribute to her HSA.

How do I handle this so as not to indicate it is my HSA, since I am not eligible to have one?

Thanks.

[BillM223]

On Medicare, it's not that you are not eligible to have an HSA, you're just not eligible to contribute to it any longer. That is, if you had some money in your HSA when you started Medicare, you could still use that money until it is exhausted; you just can't add to it.

However, in this case, it seems that this is your wife's HSA. The company certainly could have contributed money from your income to her HSA, and I assume they did that.

Normally, in the W-2 interview (i.e., where you enter the W-2 information) after you enter the W-2 itself, there are two or more screens that ask various questions. One of the screens should ask something to the effect of "Did you put any of your money into your spouse's HSA?"

That is, TurboTax sees that you (1) reported an HSA contribution because of the entry in Box 12 with a code of W on your W-2, and (2) are filing married joint.

When you see this question, answer it such that you DID put some or all of the HSA contribution into your spouse's HSA. Then some additional lines should appear which ask you to indicate how much of the contribution went to your spouse. Enter the dollar amount, and now TurboTax knows to apply the entire contribution to your spouse. 

TurboTax may act as if you have an HSA; if so, just go through the HSA interview and indicate that you were on Medicare. In the same interview, TurboTax should realize that your spouse also has an HSA, and when you indicate her HDHP coverage, then the correct numbers should appear on form 8889 (8889-S in your spouse's case).

The HSA interview can be found by searching for "hsa" (without the double-quotes) and jumping to the result.

[burger_boy1]

Thanks for the great detailed answer Bill.  Let me clarify and see if it changes any of your views or answers.

I received no W2 income from my former compay.

I did receive the W2, with my name on it, indicating the HSA deposit to my wife's account, but does not detail it that way.   As in, her name is not on the W2.

No income shows on that W2.

I have entered the W2 as mine and during the interview showed the deposit to her HSA.  We also made an additional deposit to her account.

We exhausted all the funds from my old HSA account and closed it.

Thanks again!

[BillM223 · Accepted solution]

It does not matter whose name is on the W-2, yours or your spouse's. The W-2 will not indicate to whose HSA the amount was sent, only that there was an HSA contribution.

This is why the screen is necessary in the W-2 interview, to establish to whose HSA the contribution went.

It seems as if you entered the W-2 and additional information correctly.

As for exhausting the funds from your HSA, this is a normal outcome for taxpayers who have gone on Medicare and who have also spent any funds left in the HSA on qualified medical expenses. Since you can never contribute to your HSA again, it's time to close it and save any fees.

It sounds as if all has been done correctly.