If my HSA distribution is all a qualified medical expense, why is the distribution showing up as taxable income?

[papabear]

I updated the software each time I was notified that an update was available.  I have sent a diagnostic copy of my return.  The token number is 496373.

[BMcCalpin]

Thanks!

[BMcCalpin]

@papabear I have looked at your tax return, and the good news is that your HSA distribution is not being counted as taxable income (Line 21 on Schedule 1 is blank). When you did the delete and re-add on my suggestion, did you go and look at line 21 again, or are you looking at the Wages & Income screen, where the HSA distribution is listed? Also see line 16 on your 8889 where the taxable HSA distribution is zero. It is confusing but the HSA distribution is listed at the top of the Wages & Income screen because it MIGHT be taxable, not because it necessarily is.

[papabear]

Thanks for looking at the return.  It's puzzling that things look OK from your perspective.  When I open my return, it still shows the HSA distribution on line 21 of Schedule 1 for some reason.  I purchased and downloaded the software on December 13.  You had mentioned earlier that there was an issue that was fixed in the middle of December.  Is it possible that I missed that fix even though I have downloaded and installed any updates since the purchase?  I'm thinking that maybe my best bet is to delete the current software on my computer, download and install the latest version and then start my return again from scratch.  Please let me know what you think.

[BMcCalpin]

I am puzzled, too. It really does look great on my desktop - and I didn't make any changes to your return, just went straight to view the Forms.

This does suggest that there is a problem with the software you are running on your desktop. If you can download the software again without paying, please do, and if they want you to pay again, we'll see if TurboTaxHols can help.

[papabear]

I'll try downloading the software again.  Hopefully, that will do the trick.  I'm pretty sure I can do that without paying a second time.  I really appreciate all your help.  I'll get back in touch with you to let you know how things turned out.

[BMcCalpin]

Great! I am off the the evening but TurboTaxHols may still be here. I look forward to hearing from you.

[papabear]

Unfortunately, the news is not good.  I went to my TurboTax account and accessed my downloads.  I downloaded the software (TurboTax Deluxe Tax Year 2018 Mac Download with State) to replace the version I had on my computer.  I assumed that the download would be the latest version of the software.  When I then opened my return, however, there was no change.  The HSA distribution was still showing as taxable income on Schedule 1.  I did it a second time with the same result.  I then took the bold step of deleting the 2018 software from my computer and purchasing a new version of the software (for $69.99).  I downloaded and installed it thinking it would certainly solve the problem.  To my dismay, however, it did not.  I'm really at a loss as to next steps.  Is it possible that there is a bug in this particular version of the software?  Any thoughts or suggestions would be appreciated.     

[HollyP]

I'm very sorry to hear this, but I ensure you that the file you provided is showing no amounts on Line 21 of Schedule 1 when we reviewed it. Since your experience is still different, you'll have to contact our support team by going here: <a rel="nofollow" target="_blank" href="https://support.turbotax.intuit.com/contact/">https://support.turbotax.intuit.com/contact/</a> Select your product (CD/Download Mac), your edition ( Deluxe), ask for update help, then select Continue.
On the following screen, enter your contact info, then select Get the phone number.

[papabear]

Thanks for all your help.  I'll follow-up with your support team to see if we can solve this mystery.

[papabear]

I spoke with a support team representative.  She indicated that there are a number of forms (including Form 8889-T) that are still not finalized due to the government shutdown.  The new forms are expected to be available in a couple of weeks.  She believes my HSA distribution issue will be resolved once the updated forms are available.     

[ghost]

@papabear  Suppport team has given you bad info. F8889 is available and has been for a few weeks.
<a rel="nofollow" target="_blank" href="https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotax_fed_windows_individual.htm...>

[ghost]

@papabear  since you obviously understand what's required on F8889, you should probably just override F8889 line 15 to show the amount of medical expenses and mail your return (efile not permitted with override).

[papabear]

Thanks for the info.  When I open up my return and go to the Smart Check link under the Federal Taxes section, it clearly indicates that some forms are not yet available.  In particular, it says Form 8889-T will be "available soon".  The support team rep even provided an estimated availability date of Feb 22.  Maybe the forms are available for other software formats (e.g. Windows) but not the Mac download which I am using?  In any case, I am in no hurry to file so I plan to sit tight for a few weeks and see how things play out.     

[ghost]

I've successfully entered my HSA distributions without an issue and submitted my return. So I can't understand why TT would say F8889 is not ready.