TT Isn't letting me file: Asking me to fill in 8889-T form for high deductible health plan (HDHP) as I have an HSA, but I dont' have a HDHP

[nblew]

I'm attempting to file my taxes, but TT is telling me that I need to select "single" or "family" for my HDHP plan in 2024. However, I did not have an HDHP plan in 2024.

I used to have HSA/HDHP, but switched over to PPO for my 2024 elections. I have checked my HSA account, and have a total of $0 of contributions in 2024 - by myself and my employer. I have used ~$450 of the money in that account, and the account does generate a minute amount of interest, but that's it.

On my W-2, I do NOT have the "W" code in any of the boxes for 12. My box for 12d is "DD", which I have also double-checked and confirmed in TT for my W-2 import to be correct. Nowhere is the "W" (HDHP) plans or contributions mentioned.

When looking at the form that TT is filling out on my 8889-T though, In box 1b "Excess HSA contributions carried over from 2023 that still in HSA", there is a value in there. I can garantee that I did not overcontribute in 2023 - however last year I did have a CPA do my taxes instead of doing them on TT. Regardless, even if this were to be true, why would I be forced to have an HDHP plan in 2024 because I had "excess contributions" in 2023? I'm not sure if this is the cause.

[BillM223 · Accepted solution]

If you actually had excess contributions in 2023, then TurboTax would carry over the excess to 2024 and try to apply it as a personal contribution (line 2, form 8889) to be used up.

I cannot explain why you appear to have excess contributions from 2023, but you can fix that. In the HSA interview, you are asked if you "overfunded" your HSA in 2023. What it is really asking is "did you carry over any excess from 2023?"

If you are positive that you had no excess in 2023, then answer NO to this question.

[lj6501]

I have the same issue, unable to get past the last check in filing.  Spouse's employer made a contribution for the first payroll in January 2024 even though he became covered by Medicare in December 2023.  I verified that we did not overcontribute in 2023 and the 2023 question is answered as No, but I am still not able to move past the last check and begin e-filing.  I'm not sure what to do.

[BillM223]

lj6501

The situation that you describe in which the employer made a mistake (making an HSA contribution when the employer should have known that the employee was no longer eligible) is one of those situations in which the employer is permitted to correct the error by removing the contribution from the HSA and issuing a corrected W2.

However, because it has been more than a year, typically employers and HSA custodians are reluctant to correct old errors, even when it is obvious that they made the mistake.

It appears to me that your issue is only being unable to get past a point in the Review where the Review is telling you to enter either Family or Self for HDHP coverage, even though you don't have any HDHP coverage.

In this case, enter "Self". It actually doesn't matter if you enter Self or Family - all you are doing is getting past the roadblock in the Review.

This is OK because when you indicated that you had no HDHP coverage, then all the numbers on the 8889 were correct - it was only that the Review did not understand why you would have an 8889 without any HDHP coverage.

If I have described your situation correctly, then just do the workaround and go e-file.

@lj6501