From 8889-T, but no HDHP for 2024

[henrysf]

During Smart Check for Federal Taxes, I got following:
Form 8889-T: HDHP coverage check box needs to be checked to indicate the type of coverage held under a high-deductiable plan during 2024.

(Three choices)
No entry

Line 1, self

Line 2, Family

Well, I did not have HDHP for 2024 at all.  Except I have a HSA account with leftover funds from many years ago, and that account still accumulates dividends from MMFs for me every year.  I do report the dividends for California state tax return, and that's probably why TurboTax thinks I have a HDHP? 

What should I do?  Should I ignore it?  Leave it with No entry?  Manually delete form 8889-T?  

[KrisD15]

Select "No Entry" since you made no contributions. 

[henrysf]

I selected "No Entry" and clicked Continue, but the same error would be shown again if I did another Smart Check again.  I can't really fix this error.  Do I just ignore it?  Looking for Form 8889-T, I saw $450 for following three lines:

1B "Excess HSA contributions carried over from 2023 that still in HSA"

1D Net amount of HSA contributions for 2024 after withdraws, enter on line 2

2 HSA contributions you made for 2024 (or those made on your behalf)

I made excess HSA contribution in 2023 (as I switched heath plans in 2023 after a qualified event), but I did NOT make any HSA contribution in 2024 at all.  Should I manually edit Form 8889-T to set line 1D and line 2 to be zero?   Actually TurboTax doesn't allow me modify line 1D and 2, except line 1B.

[BillM223 · Accepted solution]

No, TurboTax just has a hang-up in that it can't understand why you would have an HSA if you didn't have any HDHP coverage.

So, in the Review, when you are asked do choose Family or Self on Line 2, choose either one (I normally suggest Self) just to get around this hang-up.

Since you already told TurboTax that you did not have HDHP coverage in 2024, all the numbers on the 8889 will be correct. So it's OK to do this on Line 2 (8889) just to get around this hang-up in the Review.

P.S., please do not manually edit the 8889 - this is not only how mistakes are made, but also makes it impossible (often) to e-file, and may disqualify you from the Tax Accuracy Guarantee. You want to do everything in the step-by-step part of the program.