Turbotax (2023) Review says I need make an entry in Line 1 Form 8889 but I did not have HDHP in 2023

[eoltman]

Back in 2020 and 2021, I had an HDHP and somehow an excess contribution was made to my HSA of $194 in 2021.   Starting in 2022 I have not had an HDHP, but I am on my spouse's non-HDHP plan.  Since 2021,  I have to pay 6% tax on that excess (I waited too long to withdraw it)  This year, that same $194 excess contribution shows up, prefilled from my 2022 turbotax (as it did last year)

Not sure if this is an issue, but I rolled over my HSA plan to Fidelity but have not made any withdrawals.

The problem is Turbotax Review thinks the 8889 Line 1 needs to be filled out.  However, neither I nor my spouse  were covered under a HDHP during 2023:  The choices "Self-only" and "Family" do not make sense.

Line 2 Worksheet: B has shows the $194 excess contribution, but A and C are empty.  D shows   $194 and this value goes into line 2

Line 2 says "HSA contribution you made for 2023..." This is the $194.  But I did not make this excess contribution for 2023 - I have not made contributions to  my HSA since 2021 and have not had a HDHP since 2021 either.

Hope this is clear!

Ed

[AmyC]

You have to fill out the form every single year and pay 6% excise tax until you remove the excess and earnings related to it. 

You should make the withdrawal of the excess plus the earnings on that excess since 2021. You will declare the income and it will connect the dots to HSA. Then, you can quit having to file this form every year. 

Reference: Publication 969 (2023), Health Savings Accounts