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New Member

Errors on 8889-T when a dependant

I had a HDHP thru employer in 2017.  Employer puts $1200 in HSA for me.  I am a dependant on parents return.  I get error on form 8889-T saying I can't select "self" coverage for HDHP because I am a dependant, even though this is correct.  When I remove that it gives me an error saying I have to pick something.  It also gives errors saying I must pick coverage for each month but when I select "self" it gives me errors.  No matter what I select or don't select it generates errors and I keep going in circles.  It will not let me efile.  How do I correct this?

2 Replies
Level 13

Errors on 8889-T when a dependant

If in fact you were claimed as a dependent on someone else's return, then you were not eligible to make HSA contributions (or your employer, either). Too many employers fail to ask new young employees if they are going to be claimed as a dependent on someone else's return.

If, in fact, you were claimed as a dependent, then you need to do the following:

1. Contact the HSA administrator and ask for the withdrawal of a "Mistaken Contribution". Explain about the employer making contributions when you weren't eligible. If they honor this request, then they will send you a check for the total amount contributed.

2. If you made any payments out of the HSA, then contact your HSA administrator and report a "Mistaken Distribution". This is the amount that you took out of the HSA to pay for medical expenses. Be nice, because they don't have to do this. They will ask you to complete a form and to send it to them along with a check for that amount.

3. When you enter this in TurboTax, report your original numbers (like the amount with code W in box 12 of your W-2). Then indicate that you had "none" for HDHP coverage all year (yes, of course you did, but you weren't eligible for the HSA). This will cause TurboTax to declare all contributions as excess contributions. TurboTax will then ask if you will withdraw the entire excess before the due date of the return. Since you are already working on this  (see #1), you answer "yes", and the contributions will be added to line 21 (Other Income) as they should be. 

4. Next year (i.e., for tax return 2018), you will probably get a 1099-SA reporting earnings on excess contributions. You will enter that in the HSA interview and be taxed on it (as is right).

New Member

Errors on 8889-T when a dependant

This answer does not fix the error loop.  Please advise.
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