If the employer contributed money, then you must fill out form 8889. If your spouse was not enrolled in an HDHP, then the contributions are considered excess, and they are subject to income tax, plus a 6% penalty. That is all reported on form 8889 and you must include it with your tax return. Now that the money is in the account, you are allowed to spend it, and as long as you spend it for qualified medical expenses, the withdrawals are tax free.
If you applied for an extension of the deadline to file your tax return, and your tax return is not overdue, do you have the option of contacting the HSA plan and requesting a “withdrawal of excess contributions.“ This is not a normal withdrawal, it is a special procedure. If you withdraw the excess contributions before the filing deadline, you will still pay income tax on them, but you will not pay the 6% penalty.
Thanks for your reply. I understand that I have to fill out the form. I'm willing to pay the taxes. The problem I'm having is that the form won't allow me to get past the answer to the question
Thanks for your reply. I understand that I have to fill out the form. I'm willing to pay the taxes. The problem I'm having is that the form won't allow me to get past the answer to the question"Check the box to indicate your coverage under a high-deductiblehealth plan (HDHP) during 2022" The choices being 'self' or 'family' radio buttons, but neither of those are true. The employer was contributing to the HSA without us having been on a high deductible plan and I don't see a way to get past the selection.
The answer is None. If it's not on that screen it might be on the screen before. You may need to exit the HSA interview and start it over from the beginning. Try entering the HSA interview from the Medical Expense section on the Deductions page, it might be more direct than if you were placed into that interview in the W-2 section.
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