Question

How do I fix this? I did not have an HDHP during any part of 2021. Yet TurboTax is requiring that I provide information from form 8889-T that I do not have.

Forum|Forum|4 years ago
February 4, 2022
1 reply
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I do have a new HSA with $300 in contributions and received form 1095-C.

TurboTax Deluxe Online

Employee

Form 8889 is generated by TurboTax from your other information. If you made contributions to an HSA but did not have a qualifying HDHP, those contributions are disallowed. You must remove the contributions from your account before April 15 and pay income tax on them, or you will pay income tax plus a 20% penalty if you leave the money in the account.

B

blobree

The money was used for a surgury which is a qualified expense. I have been saving this for several years. That was the intent of the HSA. There is less money in the account now than what would be taxable. Should I be spending the entire HSA every year to avoid this problem?

O

Opus 17

Employee

@blobree wrote:

The money was used for a surgury which is a qualified expense. I have been saving this for several years. That was the intent of the HSA. There is less money in the account now than what would be taxable. Should I be spending the entire HSA every year to avoid this problem?

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