My return was rejected for some issues with my HSA contribution vs distributions. How long do I need to wait to file again?

[Anonymous]

I loaded the update this morning and went through the HSA questions again as the software directed.  Calculations for both forms 8999 and 5329 now appear to be correct.  I re-submitted my e-file application.  I just got the email that my federal return was accepted.  

[Justanotherphil]

Well, after running updates today I was shorted 65 bucks on my refund because of intuit's subpar development and QA processes.

Taxes already filed and accepted pending deposit because they said it was corrected 2/9 and it did accept at the time.  Now the amount is different just from updating and opening my file. 

So, intuit, you going to refund me the difference since it's indeed a calculation issue in your software and not an IRS system issue? 

[dmertz]

I agree that this all appears to be working correctly now on Form 8889 and 5329.

[mellange]

Are you using the online version of Turbotax or software?  My original return was rejected the other day for this issue and while the message on Turbotax said that the bug would be fixed on 2/23, I am still having the same issue.  Anyone having luck with the online version being updated?  I wish there was a way to just correct the form on our own without depending on Turbotax's lackluster questioning... 

For me, Line 44 on Form 5329 is not being populated with my 2023 HSA distributions which would lower my excess contributions from the prior year and reduce my additional taxes.  It's not a significant amount, but I would like it to be correct and not have this same issue next year.  

Thanks for any input!

[dmertz]

Only taxable regular HSA distributions appear on Form 5329 line 44.  Taxable HSA distributions are those regular distributions that are not claimed as applied to medical expenses.

With regard to a filing being rejected with the message:

F8889-010 - Form 8889, 'TotalHSADeductionAmt' must be equal to the smaller of 'HSAContributionAmt' or 'HSALimitedContributionAmt'.

If you are using the CD/download version of TurboTax, make sure that you have received the most recent update to TurboTax.  Make sure that you are connected to the internet and Go to Online -> Check for Updates.

[JY1040]

I am also having an error message that my HSA distributions exceed my contributions. I have a $413 carryover from 2022 but there is NO Where to enter this carryover, & with this $413 my distributions will not exceed my contributions. I am thinking I could enter the $413 as my own HSA contribution for 2023, since I won't exceed the maximum contribution amount, what do you think?

[Justanotherphil]

Use different software that doesn't have this bug. Turbotax dropped the ball on this big time. 

[BillM223]

@JY1040 

"I am also having an error message that my HSA distributions exceed my contributions."

There is no such message. Did TurboTax tell you that you made excess contributions? That means that the contributions you made (whether by you or your employer) PLUS any carryover of excess contributions from 2022 have exceeded your annual HSA contribution limit.

The $413 carryover should be added to any personal HSA contributions and placed in Line 2, form 8889.

So what was the code W amount in box 12 of your W-2? What type of HDHP coverage did you have (Family or Self)?

[JY1040]

Hi Bill, thanks for your reply.  Upon Checking for errors I got the following error message.

Form 8889-T" Line 12 Wks. line B should not be greater than the amount of excess employer contributions/excess HSA funding distributions. HDHP coverage is Self.

Line 12 Wks., Line B 1,273.

There was NO excess contributions in 2022, just a $414 balance that should carryover to 2023 but no line to enter as a carryover. 

Line 2 Smart WS - A. Total amount contrb made in 2023 = I added the 2022 carryover + W2  of $890 = $1,305.

My Distributions on F1099-SA = $1,273.

As I am writing this, Box of Excess Employer Contributions & HSA Funding Distributions Wkt ... B. is prefilled with amount of $1,273. What if i enter $-0- since it is titled as Excess Contributions ???

Thanks again for your help!

[BillM223]

The number in line 12B is known for getting "stuck". That is, even when you change the input that created this number, the number won't change, and you get this type of error.

The only fix is to do an HSA "reset". That is, you will delete all your HSA data and start over. But you have to do it this way, to make sure you get the stuck number.

***HSA Reset***

1. make a copy of your W-2(s) (if you don't have the paper copies)

2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen)

*** Desktop***

3. go to View (at the top), choose Forms, and select the form(s) 1099-SA (if one), 8889-T, and 8889-S (if one) . Note the Delete Form button at the bottom of the screen.

*** Online ***

3. go to Tax Tools (on the left), and navigate to Tools->Delete a form

4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one) 

5. go back and re-add your W-2(s), preferably adding them manually

6. go back and redo the entire HSA interview. 

[JY1040]

Thanks Bill will work on it tomorrow. Like "restart" your phone or computer. I do appreciate your time on this. 

[BillM223]

Just think of me as Microsoft...on second thought, don't 😉