My tax return has been rejected continuously. Updated SW but getting the same issue report - FED_5329 HSA Contribution.

[hsangmin]

TurboTax doesn’t show any issues before e-file but got the simple (same) issue continuously as below. Yes, updated TurboTax as guided. Any solutions/resolutions would be great. Thank you.

“FED_5329 HSA Contribution - There is an issue related to HSA contributions.”

[BillM223]

Is there some more to that message? Do you have excess HSA contributions? Can you see your completed forms if I ask you some more questions?

1. What are the values in lines 42 to 49 on form 5329?

2. What are the values in lines 14a to 17b on form 8889?

[hsangmin]

Hello,

Thanks for your reply. Just checked mine (2023 form).

1. the values in lines 42 to 49 on form 5329: 

42: 10 (my 5329 in 2022 was 167) -> not sure why it has this value (10), how can I fix it? TurboTax checks didn't complain this.

46: 10

48: 10

49: 1

2. the values in lines 14a to 17b on form 8889:

14a: 3,640

14b: null

14c: 3,640

15: 3,640

16: 0

17b: null

* line 2: 10 (not sure why it has the value, 2022 was 0), I just put it from Fidelity1099-SA for my HSA which has gross distribution amount 3,640 and distribution code '1' only.

It would be great if you can provide how to fix it.

Another FYI, current TurboTax says wait for s/w update on 2/23/2024 for my issue. Thank you.

[BillM223]

Thank you. I am aware of this message to try after 2/23/24, but I am hoping to find out if your issue is the one that is expected to be addressed on 2/23.

1. * line 2: 10 (not sure why it has the value, 2022 was 0), Line 2 on the 8889 is "normally" the amount of personal HSA contributions made in 2023, but if you have any HSA carryover of excess contributions from 2022, they will also appear here.

So, TurboTax thinks that you carried over $10 in excess HSA contributions.

2. The same line on your 2022 return should have been your carry over from 2021; however, the IRS has never provided any instructions on where to put carryover contributions on the 8889. So for years, TurboTax put it on line 2, but just didn't print it. The only way you could tell was to look at line 13 and wonder why it sometimes printed a value that was neither line 2 (zero) or line 12 (which was larger then the invisible amount on line 2). This treatment of line 2 on the 8889 was changed just a week or two ago.

Unfortunately, I can't tell definitively tell is your issue if addressed by the upcoming update, but let's hope that it will be, and at least you also know why your 5329 says what it says.