How do i correct a TY25_HSA rejection code?

[rogeratk]

The latest Federal Rejection has code TY25_HSA  on it. Howe do i fx this??

[rogeratk]

Since Turbo  Tax Business is not able to submit my return (for the first time in over 15 years) how do i get a refund for the State return that also has been rejected because the Federal return was rejected with a TY25_HSA and their is no way to fix it. I'll look for another provider in the mean time.

[user17753224162]

There might be a bug.  TT is checking too many boxes.  Here is what I am trying.  Delete forms 8889.  Go back to the Q&A.  Even if you had the same coverage all year, select No.  Then for each month check off the coverage you had.  At least that's what another user said to do.  Skip the final review as that will just rebreak it.  I resubmitted 1 hr ago and so far, no rejection email/Text.  Yesterday was getting the rejection after 15 mins.  So hopefully this is it.  

[rogeratk]

Thanks I'll give it a try today but I'm still not holding my breath. BTW I believe the form to delete is 8889T which I already tried but i did not try skipping the Interview. Sigh.

[RAGONYAR · Accepted solution]

OMG user17753224162!

I just tried your fix suggestion and it worked! Thank you to the TT Community.

I've been using TT for ~25 years and never had an issue like this - so happy it appears to be fixed.

Here is what I did (which is what you suggested): 

1. Went to TT and in the upper right selected "Forms"

2. Found form 8889-T in the list and deleted it (it now has a red ! point next to it)

3. In the upper right selected "Step by Step"

4. Selected "PERSONAL"

5. Selected "Deductions & Credits"

6. Scrolled down and selected "Medical"

7. To the right selected "Visit All"

8. Select YES for Did you have any medical expenses in 2025

9. Check Box Health Savings Account (HSA) - then at the bottom "Continue"

10. The next few questions you have to navigate yourself with your situation

11. When you get to "What type of HDHP coverage did you have during 2025? - select "had  different plan types at different times of the year  (MY OPINION IS THIS IS WHERE THE TT BUG IS - I had been selecting the first option covered by family plan every month)

12. Select continue and the next page in a list of months

13. From the Health plans drop down select your plan for each (all 12 months) month

14. Select continue and get through the next few questions specific to your situation until your get back to the category header "Your 2025 Deductions & Credits"

15. Once you are there go directly to "FILE" and finish filing

Again, thank you to the TT Community!

Best of luck in 2026

[rogeratk]

Thank you very much for that. I followed these exact steps and hallelujah:

"Your federal tax return was accepted by the IRS."

Your a genius!!

Unbelievable that such a simple logic can't be programmed into the app!! Sigh!!

[rogeratk]

Both Fed. and State are now accepted for me. Thanks again for the tip!!

[KThiele]

Unbelievable to me that TT can't handle this situation.  I have to lie about my situation, and then select family plan for each month.

I had been going to ChatGPT, etc, to figure what was going on w/ my taxes.  I had deleted the 8889 forms so many times, and re-entered the information.  I had been rejected 6 times on e-file, and I was debating about filing w/ paper (uggh).

Thanks again.  I just e-filed for the 7th time.  The 7th time is the charm.

Warm regards.

[chaniarts]

Thanks! i had it rejected for 5 times, but this fixed it. seems there is a bug somewhere.

[cvaliente]

If you get the generic "TY25_HSA rejection code". Verify your HSA contribution total in W2 Box 12 (Code W) and make sure it matches exactly what TurboTax reports on Form 8889. TurboTax may round the number and then reject your return because the rounded amount doesn’t match the actual W-2 value. 

In my case, the issue was a rounding/precision mismatch. My W-2 Box 12 (Code W) showed $9,549.90, but TurboTax internally rounded it to $9,550.00.

For 2025, $9,550 is the maximum allowed HSA contribution for someone age 55+ with family coverage (the $8,550 family limit plus the $1,000 catch-up). Because of this rounding difference, my return was rejected since the exact W-2 amount didn’t match TurboTax’s rounded figure.

The only error provided was the generic TY25_HSA rejection code, with no explanation about the rounding issue, which made it difficult to diagnose.

The only error provided was the generic TY25_HSA rejection code, with no explanation about the rounding issue, which made it difficult to identify the problem.

A quick correction is to make the cents 00 in the W2, and it will populate it correctly in TT without the unsolicited rounding. 

[user17754333455]

Thank you so much!!!!!  I was getting ready to mail mine after deleting and redoing that form so many times and 6th rejection. 

[TTuser70]

Agree.  This worked for me too.  Glad there was a fix.  

[whogan3]

Thank you! This procedure worked for me too. 4th file was sucessfull.

[user17754729284]

You are a genius!  Many, many, many thanks!  I don't know how you figured this out.  But, I am very grateful 🙂 

I have been using Turbo Tax (TT) for as long as I can remember and paper forms before that.  I have never encountered an issue like this.

After a stressful and frustrating weekend, checking and rechecking my numbers, and trying different things, your instructions worked for me as well.  It appears that checking the "Different Plans" box changed and corrected the Smart Worksheet at the end of Form 8889-T.

I hope that Turbo Tax fixes this soon, with the deadline fast approaching,  for other tax filers who may be encountering this same issue.

Regards

[Mdnewman]

based on your suggestion, I went into the forms directory and saw that there were two 8889 forms. one was an 8889-T and the other was an 8889-S that didn’t have any inputs, so I deleted it. That solved the problem and the IRS accepted my returns. Obviously this is a TurboTax glitch that they should be ASHAMED of. I’m tired of these software glitches from TurboTax. I think I’ll try tax cut next year.