Turbotax is saying that I need to enter an amount into form 8889-T, which seems to be relevant only if I have an HSA, but I don't.

[crispone]

I did indicate that I have a HDHP (I have a marketplace bronze plan). Am I correct in thinking that 1) all marketplace plans with high deductibles are HDHPs and that 2) not all HDHPs are HSAs? How do I fix the error (enter an amount on line 14 of form 8889-T)? Thank you!

[DawnC]

Did you have any contributions to an HSA on your W-2?   If you did, you would have a code W amount in Box 12.  If you have insurance through the Marketplace, all you need to do is enter your 1095-A.   You must have an HDHP to make contributions to an HSA, but an HDHP is not required to use money in your HSA (distributions).   Form 8889 reports both contributions to and distributions from an HSA.  

You are correct that some marketplace plans have high deductibles, but those questions are asking about HSA contributions, specifically, contributions in Box 12 of your W-2 with code W.    If you don't have HSA contributions on your W-2, you should answer NO to the HDHP questions.   You must have an HDHP to contribute to an HSA, but not to take distributions from an HSA.  

In order to contribute to an HSA, you must have an HDHP.    Line 14 from 8889 is for distributions.   You can have distributions from an HSA without having an HDHP.   Distributions from an HSA are reported on Form 1099-SA.    If you have that form, enter it, but answer NO to any HDHP questions.    As long as you tell TurboTax that the amount on 1099-SA was used for qualified medical expenses, it won't be taxable.   

All of the above is assuming you did not have any contributions to an HSA in 2021.   

What is a health savings account (HSA)?

What is a high-deductible health plan (HDHP)?

[crispone]

Box 12 is blank on my W-2, and my Marketplace plan is not an HSA, so that's why I'm confused about why TurboTax is asking me to enter an amount on a form that is only relevant for those who have HSAs. By the way, it's asking me to do this as part of its error checking at the end. It didn't ask me anything about HSAs as it was stepping me through the process.

How do I correct the problem?

[BillM223]

"1) all marketplace plans with high deductibles are HDHPs "- no, many are, but not all. Being an HDHP policy that enables the use of an HSA has more requirements than just the deductibles.

"not all HDHPs are HSAs" An HDHP is a health insurance, similar to any other health insurance policy. An HSA is a trust instrument owned by you and set up in your state (presumably your employer helps you set it up). The closest thing to an HSA is an IRA.

"I did indicate that I have a HDHP (I have a marketplace bronze plan)" - I don't know how you did this, but it was wrong. A marketplace policy MIGHT be an HDHP, but not necessarily so.

You need to delete all HSA/HDHP data from your return. You do this by the following:

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 desired form. 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. continue with your return.