TurboTax Basic 2021 Taxable Health Savings Account distribution does not match Form 8889

[intotheglory]

Form 8889 line 16 is zero, but Schedule 1 line 8e is $2,597.

I had an excess contribution of $2,597 last year that I took distribution of in 2021.  Form 8889 line 13 shows a zero amount and it says to fill that amount out on Schedule 1 line 13, it is zero as well.  That is good.

Form 8889 line 16 is zero and it says to fill that amount out on Schedule 1 line 8e but it filled in $2,597.

Which form is in error?  Schedule 1 or Form 8889?

[JohnW152]

The way your fields are populating Schedule 1, it sounds like you may have generated two Forms 8889 in TurboTax – one for you, and one for your spouse.  

To check this in TurboTax Desktop, select the Forms icon in the upper right corner.  You can then see what forms are in your return in the left pane that generates.

If you see two Forms 8889, you’ll know there’s one for you and one for your spouse.  Generally they’d be labeled Form 8889-T for the primary taxpayer listed on the return, and 8889-S for the spouse listed on the return.  

You can click on either one to see the data, and delete one or both as necessary to correct your return.

If this isn’t what’s happened, please post back.

[intotheglory]

Thank you John, you were right, but I still have the issue.  There were 2 forms 8889 (8889-T and 8889-S),  I deleted the 8889-S which had nothing filled out and even though 8889-T line 16 is $0, Schedule 1 line 8e is still $2597.   I saved the file, exited from TurboTax, and reopened it.  Same result.

[JillS56]

This would be correct.   You indicated that you "had excess contribution of $2,597 last year that I took distribution of in 2021".   The amount of the excess contribution would be taxable on your 2021 return.   TurboTax is carrying over the amount of the excess contribution that you had removed on your 2020 return.  

TurboTax is reporting this correctly.   Form 8889-T would show a 0 if you did not have any contributions to your HSA in 2021.   However, Schedule 1, Line 8e would have the $2,597 for the excess contribution distribution you took in 2021.