You can file again now if your return is rejected, but fix whatever the problem is with the HSA first. Is there an error message?
This is the message I received after filing:
F8889-010 - Form 8889, 'TotalHSADeductionAmt' must be equal to the smaller of 'HSAContributionAmt' or 'HSALimitedContributionAmt'.
I fixed the HSA information and refiled, I was immediately notified that my return was again rejected.
I believe that "F8889-010 - Form 8889, 'TotalHSADeductionAmt' must be equal to the smaller of 'HSAContributionAmt' or 'HSALimitedContributionAmt'." is saying that on the 8889, line 13 must be equal to the smaller of line 2 or 12.
Is it possible that you had excess contributions from 2022 that carried over to be applied to 2023?
Can you see your 2023 form 8889? If so, what is the value for lines 2, 12, and 13?
@BillM223 , I'm having the same error as @glennrice91 with my tax return getting rejected. I do have the scenario you are describing - Excess contributions from 2022 carrying over into 2023 with no contributions in 2023.
My values:
2 - $0
12 - $1292
13 - $1217
Is the fix to manually change line 13 to zero, or do we just have to wait for the fix so TurboTax calculates 13 correctly?
No, making line 13 equal to zero, would be wrong. Line 2 is actually $1,217 (the amount you carried over). It's just that the IRS instructions are non-existent on how to handle the carryover on the 8889.
On the 8889, it is treated as a personal contribution (hence, on line 2), but the instructions don't call for it to be printed there.
The calculations have been this way for years (I have been doing HSA questions for 8 years), and the only problem was when taxpayers looked at the 8889 and saw the discrepancy - it filed just fine. This is the first time it has ever caused a problem with filing...
I will look at it.
Thanks for the fast follow-up @BillM223 . I'll just wait until I hear either Turbotax fixed it so I can re-run it all or you write back with a manual workaround to make it do whatever it needs to do 🙂
Out of curiosity, would this form issue have any sort of ripple-effect back in the 1040 or is something self-contained as an error on the worksheet?
"Out of curiosity, would this form issue have any sort of ripple-effect back in the 1040 or is something self-contained as an error on the worksheet?"
No, this is just a presentation issue on the 8889, all the numbers on the 1040 are correct.
***
While we are on the subject of this issue, I need to ask a favor from you:
In order to pursue this issue and its rectification, I need a token from you. A token is a pointer to your tax data in our data base. However, the process of creating a token "sanitizes" your return so that all the personally identifiable information is removed. But I will need a sample return (but from a customer) in order to follow through with this.
The instructions below tell you how to create the token and send it to me. Thanks!
Online
Desktop
@BillM223 my token is 1170434. If you can manually fix my issue while you research fixing the app, feel free to re-submit 😄
Thanks,
Bill
Same issue, but nothing happens in the app when I click "Fix this issue"
I end up here. I attached screenshot. My question is, is TurboTax going to fix it or do I need to after the 9th? The app said I overcontributed and asked if I wanted to withdraw, but then said I can't because it was from the year before. So I put no, but I was very careful calculating my limits and they changed in 2022, I think. We have to pay to file with TurboTax if we have HSAs, but then they mess it up... I can send you a token as well, if you want to review mine as well. I really don't think I entered anything wrong... I'm just confused about what to do next. Do I start the entire return over? Thanks for your help.
@FlyinLion There is an issue in that form that you won't be able to fix. I just provided @BillM223 a token to my anonymized return so he can look into the issue - sounds like he knows what is happening and is just trying to figure out why it's happening.
From what I'm pulling together, the form, while not impacting the overall 1040 calculations/results, is failing the IRS's validation which is kicking back the return on e-file. Once TT fixes the issue, we will be able to resubmit.
I agree the that instructions for Form 8889 do not address how to report applying a previous year's excess contribution to the current year. TurboTax has always just added to line 13 the amount present on Form 5329 line 43. However, IRS checking of Form 8889 now appears to expect the excess being applied to be included on line 2, considered to be a contribution for 2023 made on the HSA owner's behalf, in addition to including it on Form 5329 line 43. It's certainly not clear if this was intentional on the part of the IRS or an oversight on their part when adding this math checking to Form 8889.
So, is this an irs issue, or a turbotax programming bug? Support was not helpful and stated "the irs isn't accepting this form for efile yet" even though the irs website states otherwise.....
Curious as to why we have to wait until Feb 9 to retry... Intuit should be more transparent here.
"So, is this an irs issue, or a turbotax programming bug?"
It's a disconnect between what the IRS is now expecting and what TurboTax is providing and has provided for many years. To me it would make sense for TurboTax to make the change to accommodate the IRS, but that isn't necessarily how it will be resolved. The change that TurboTax would need to make would be to add the amount from Form 5329 line 43 to Form 8889 line 2 instead of line 13.
At present, the only way to be able to use TurboTax to file without the IRS flagging a problem would be to use the CD/download version of TurboTax to override line 2 of Form 8889 and add the amount from Form 5329 line 43, then override line 13 of Form 8889 to subtract back off that same amount, then print and mail the tax return.
@BillM223 can you confirm you saw my post with the ID you requested?
Hi - has there been a fix for this issue determined yet? I am getting the same error.
Yes, I did receive your token number, and your return looks exactly the way I expected: your carryover from 2022 was not in line 2, but the calculation on line 13 acted like line 2 had your carryover. Except for the presentation of zero on line 2, your 8889 appears correct.
The only thing I have heard is what you all have heard - that it will be addressed on February 9.
***To everyone on this thread***
1. It happens that taxpayers sometime accidentally indicate that they have a carryover when they actually don't. If you had excess contributions in 2022 but withdrew them in a timely manner in early 2023, then when you see the question in the HSA interview, "Did you overfund your HSA in 2022?" answer NO, if you corrected the excess for 2022. What TurboTax wants to know is "did you carry over the excess to 2023?" When you withdrew the excess in early 2023, you "cured" the excess contribution for 2022.
2. If you have the desktop product, and you have this situation of line 13 not being equal to the smaller of line 2 and line 12, then try overriding line 2 with the value in line 13. See if it will let you file.
Thanks @BillM223 - I was able to override the value in Box #2 on my desktop Turbotax app for form 8889 and was able to e-file it successfully (and it was accepted by the IRS).
But is it mathematically accurate? Any impact to refund or debt etc? Nervous to do the same and then have an incorrect entry
@Justanotherphil At least in my case, the explanation @BillM223 gave made sense. Since I bought the audit protection, if the IRS decides to audit me I'll let TurboTax deal with explaining it 🙂
Ultimately, it was the IRS validation that was failing, and with that change, the IRS validation after I submitted succeeded, so in theory the IRS like that answer more than my original submission.
Both lines 2 and 13 of Form 8889 would need to be overridden. Overriding just line 2 would cause the applied excess to be doubled on line 13. Overriding will block e-filing. If TurboTax developers are going to provide a fix in the next few weeks it would be more expeditious to wait for the fix than to file on paper.
@dmertz , I changed changed line 2 per the instructions provided which did not double line 13. I then re-filed and the e-filing was accepted by the IRS. If the IRS wants to audit me for what didn't change the amount I owed at all (or if it did, it was a couple bucks), then they can have at it. Let's the TurboTax tax defense team earn their money. 🙂
P.S. I am NOT a tax professional or anything remotely close, so you do whatever you feel is best.
I'll add myself as one more data point of users with this issue. Sounds like the common bond is that we all overfunded a 2022 HSA, but already corrected it during calendar year 2023?
If so, is the guidance to go back to the form and "lie" in our answer to "Did you overfund your HSA in 2022?" or is it best to just wait until Feb 9 and try again? I'm not super interested in trying to wrestle with the desktop client to manually fudge it if I don't have to
If the excess was not doubled on Form 8889 line 13, it seems like the excess might not be handled on Form 5329 correctly, perhaps omitted from Form 5329 entirely. As far as I can tell, TurboTax adds the amount from line 2 to the amount from line 43 of Form 5329 and puts the result on Form 8889 line 13.
Doing an override voids the accuracy guarantee.