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How to fix torbotax calculation error

Forum|Forum|5 years ago
January 28, 2021
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In form 8889 for HSA, Line 13 says -"Enter the smaller of line 2 or line 12. Turbo tax entered the higher value. This messes my taxes. How can this be fixed?

TurboTax Premier Online

Best answer by BillM223

This is not an error, but is a shortcoming in the IRS' design of the form, in that it does not have a way to represent the following situation.

If you reported a carryover of excess HSA contributions from the previous year (in the question, "Did you 'overfund' your HSA last year?"), then this amount is carried forward to the current year as a "personal contribution", to try to deduct it in the current year (it was not deducted in the previous year).

The amount of personal contributions should go on line 2 of the 8889. However, line 2 is normally for current year personal contributions, and you may have had none. Prior year personal contributions (i.e. the carryover) don't print on line 2, even though they are part of the calculation.

Thus we have the apparently illogical situation of TurboTax picking line 12 as the smaller amount when line 2 is probably blank. If you compare your carryover amount to line 12, I think that you will find line 12 to be the smaller amount.

This oddity will not affect your return.

B

BillM223Answer

This is not an error, but is a shortcoming in the IRS' design of the form, in that it does not have a way to represent the following situation.

If you reported a carryover of excess HSA contributions from the previous year (in the question, "Did you 'overfund' your HSA last year?"), then this amount is carried forward to the current year as a "personal contribution", to try to deduct it in the current year (it was not deducted in the previous year).

The amount of personal contributions should go on line 2 of the 8889. However, line 2 is normally for current year personal contributions, and you may have had none. Prior year personal contributions (i.e. the carryover) don't print on line 2, even though they are part of the calculation.

Thus we have the apparently illogical situation of TurboTax picking line 12 as the smaller amount when line 2 is probably blank. If you compare your carryover amount to line 12, I think that you will find line 12 to be the smaller amount.

This oddity will not affect your return.

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