Unable to fill line 10 on Form 8889 for IRA to HSA rollover

[vegas_man]

I am using the desktop version of TurboTax Home and Business.

When entering a 1099-R for a qualified IRA to HSA rollover, the step-by-step wizard does not ask the question "Did [name] put this money into a Health Savings Account?" – due to this, line 10 on Form 8889 is not calculated correctly.

Is there a workaround for this using Forms mode?

[JulieS]

We'd love to help you complete your tax return, but need more information. Can you please clarify your question?

What code do you have in box 7 of your 1099-R?

[vegas_man]

1099-R box 7 is code J.

Per the IRS, I know the amount is not treated as income and is not deductible. I also know the amount must be documented on line 10 of Form 8889 under Qualified HSA Funding Distributions.

So I enter Forms mode (TurboTax desktop) and go to Form 8889 and right-click on line 10 box A and select Data Source. It tells me that field is populated by form 1099-R line 1f. After clicking the hyperlink, I’m taken to the 1099-R summary. I cannot populate this box and the message above says to use QuickZoom to enter on the 1099-R Worksheet.

So I click QuickZoom and select the 1099-R in question, and Open Form. Then I scroll down to the section titled Insurance and enter the amount in the line for "Amount of health savings account (HSA) funding distribution" and enter the amount of the distribution that when from the Roth IRA to my HSA.

After doing this, no calculations are made for my taxes. TurboTax still treat the 1099-R income as taxable.

Is there something else I need to click or populate in Forms mode to make TurboTax perform the correct calculation and not treat the 1099-R as income?

[JulieS]

I have verified it's not working the way it should. Please provide a sanitized file so that we can get an investigation started for this issue. A sanitized file is a copy of your tax file, but without any personally identifiable information. 

Here's how to do that:

1. Open your return.
2. Select Online from the black bar at the top of the window.
3. Select Send Tax File to Agent.
4. Select Send.
5. A new window will appear with a token. Send me the token in this thread.

[vegas_man]

Hi Julie,

Thanks for the prompt reply. Per expert "Bill" (see here: https://ttlc.intuit.com/community/file-with-turbotax/discussion/re-form-1099-r-smart-worksheet-missi...) I cannot use TurboTax to file my taxes correctly.

Can you confirm this is true?

[JulieS]

Yes, apparently they don't intend to fix that for this year. 

In that case your only option with TurboTax would be to do the override, print, and mail in your return. 

[vegas_man]

Sounds good, thanks!