Have one error to "Fix" before filing on 8889-T for Line 1:
Check This Entry:
No entry
Line 1, Self
Line 1, Family
However, I did not have an HDHP coverage at any time during 2021. My W-2 does have W in box 12.
I do not have excess contributions from 2020 that are carrying over, I answered in the HSA questionnaire accordingly ("No we're not going to make this withdrawal"). How can I get around this error?
Please help, thank you!
This is a situation where the Review in TurboTax is confused on why you are answering HSA questions when you didn't have HDHP coverage.
Just check the box for Self - you have already told TurboTax that you did not have any HDHP coverage, so the calculations will be correct. And this will get you past this issue in the Review.
This is a situation where the Review in TurboTax is confused on why you are answering HSA questions when you didn't have HDHP coverage.
Just check the box for Self - you have already told TurboTax that you did not have any HDHP coverage, so the calculations will be correct. And this will get you past this issue in the Review.
Thanks for the response. Now it is asking me
Do I select Self here as well to by past error?
Hi @BillM223 ,
Do I go ahead and mark none for all the months in 2021 for plan since I marked Self from you previous suggestion for having no HDHP coverage?
Yes, mark 3A12 as None (it should have been that already).
Regarding the following: "Just check the box for Self - you have already told TurboTax that you did not have any HDHP coverage, so the calculations will be correct. And this will get you past this issue in the Review."
I have a similar issue in TurboTax 2024. Running Smart Check I keep getting an error on Form 8889-T line 1. I did not have an HDHP in 2024, but I had an excess HSA contribution carryover from 2023. If I check "Line 1, Self" the Smart Check will run without this error, but it checks the "Self-only" box on Line 1 of Form 8889-T. This 8889-T form gets submitted with my return and I'm concerned that it is not accurate because I did not have an HDHP in 2024. Will this be flagged or cause a problem with the IRS?
No, it's OK.
Yes, the Self box will be checked, but Line 3 will have zero or none, showing no coverage, which is what you want.
If the IRS ever writes you a letter about this (I have not heard of them doing this), just explain that you were dealing with a workaround in the tax software that you use. Since all your numbers are correct, that should not be a problem.
How do you plan to deal with the carryover? You have two choices:
1. Apply it as a "personal" contribution the next year in which you have HDHP coverage, or
2. Make a distribution equal to the excess, but when the 1099-SA comes, enter it in TurboTax saying that none of it was for qualified medical expenses. This will add the distribution to your Other Income as well as add a 20% penalty, but the excess will disappear.