(TurboTax Home & Business)Solution that worked for me: I had repeated e-filing rejections due to a “potential issue related to HSA, MSA contributions.” No code, just told to fill out the interview again and look for my errors. The problem only occurred on a joint return where only the spouse had HSA coverage. Root cause (the bug): On Form 8889S (Spouse’s HSA form), Line 3 Smart Worksheet, TurboTax was:
- Checking the “Family” box at the top, and
- Also filling in the monthly coverage amounts in the Family column below.
This combination made the IRS think there was Marketplace coverage (requiring Form 1095-A) when there wasn’t, causing the rejection. Fix that worked:
- Switch to Forms Mode.
- Open Form 8889S (Spouse’s HSA form).
- Go to Line 3 Smart Worksheet.
- Uncheck the “Family” box at the top.
(This also clears the monthly amounts in the Family column.) - Manually re-enter the correct full-year family coverage amount in each of the 12 monthly fields in the Family column (match last year’s Form 8889S exactly).
- Save and close the form.
- Run Federal Review → State Review → E-file again.
After doing this, my return was Federally Accepted in about 11 minutes after the next hour and the state return was accepted about 8 hours and 43 minutes later. Note: This seems to happen most often on joint returns where only one spouse has HSA coverage. If you have the same rejection, check Line 3 on the appropriate 8889 form (8889T or 8889S). TurboTax — please fix this bug in the interview/Smart Worksheet logic. Hope this helps someone else avoid hours of frustration!
