I am a federal employee with blue cross blue shield health insurance. Would this be considered a HSA for tax purposes? I have the 10950C form, but not the 8889 form.

Forum|Forum|6 years ago
June 6, 2019
4 replies
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I work and live in Virginia.

TurboTax Deluxe Online

acrzybearAuthor

Box 12 shows DD and D, no W. Now I have to figure out how finish the turbo tax form, it keeps saying I don't have insurance.

Lisa995

Employee

An HSA is a Health Savings Account....do you or your employer pay into a health savings account? Its would be shown in Box 12 of the W2 with a code W.

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BillM223

The first issue is whether or not your BCBS insurance is an HDHP (High Deductible Health Plan). You must be covered by an HDHP in order to qualify for an HSA (Health Savings Account).

An HDHP (High Deductible Health Plan) is an insurance plan that

A higher annual deductible than typical health plans, and
A maximum limit on the sum of the annual deductible and out-of-pocket medical expenses that you must pay for covered expenses. Out-of-pocket expenses include copayments and other amounts, but don’t include premiums.

HDHP Requirements

Self-only coverage

Minimum annual deductible - $1,300
Maximum annual deductible and other out-of-pocket expenses* - $2,600

Family coverage

Minimum annual deductible - $6,550
Maximum annual deductible and other out-of-pocket expenses* - $13,100

Please contact your HR department to find out if your insurance plan is an HDHP. Since you have no code W in box 12 of your W-2, you likely do not.

Note that the DD refers to the sum of the payments your employer and you made together towards your insurance premiums (whether an HDHP or not).

The 1095C is a form sent to you by your insurance company to show that you had health insurance and for what months. You are not supposed to receive a form 8889, because it would be completed by TurboTax if you had an HSA, which you probably do not.

You tell TurboTax that you have health insurance by going to the Health Insurance section near the top of your Federal screen (where you see Wages & Income and Deductions & Credits). Please return to this interview and complete it, entering your 1095-C.

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Phil Kinney

I am a federal employee with blue cross blue shield health insurance form RI 20-53. This is the "notice of annuity adjustment" form which I receive every year to break down my annuity and what it covers which covers Health Benefits. Would this be considered a HSA for tax purposes? I have the 10950C form, but not the 8889 form.

Also I HAVE NOT had ANY break in Medical Health Benefits as you say on the Tax Delux program!!

Meares

I am a retired Fed with Blue Cross Standard. My deductible is 700/12,000. Too low for a HSA.

MonikaK1

Blue Cross Blue Shield for Federal employees is traditional employer-sponsored health insurance, and not a Health Savings Account.

An HSA is a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. You must be an eligible individual to contribute to an HSA.

No permission or authorization from the IRS is necessary to establish an HSA. You set up an HSA with a trustee. A qualified HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of individual retirement arrangements (IRAs) or Archer MSAs. The HSA can be established through a trustee that is different from your health plan provider. Your employer may already have some information on HSA trustees in your area.

See IRS Publication 969 for more information about HSAs.

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