HSA Account with no HDHP

Forum|Forum|6 years ago
February 9, 2020
2 replies
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I'm doing my daughter's taxes. She has an HSA with contributions from her employer. It's listed in box 12 of her W2 with "W." She has never contributed to this. The employer mentioned something about a Cafeteria Plan. She does not have a HDHP. I am unsure how to fill out form 8889. There is no option for this. Also she has never been enrolled in medicare. I chose"none" but this implies she in enrolled in Medicare. What should we do?

AnnetteB6

First, double check with her employer to be sure that the W-2 is correct and also verify that she is not enrolled in a High Deductible Health Plan (HDHP).

If it is correct and she does in fact have a Health Savings Account with funds deposited and she is not covered by a HDHP, then she will need to withdraw those funds prior to the due date of the 2019 tax return to avoid a 6% over-contribution penalty.

As you go through the HSA section of her return, you will indicate that she was not covered by a HDHP during the year. This will generate messages telling you that the contribution to the HSA will need to be withdrawn. You can indicate that it will be done by the due date of the tax return and an additional penalty will not be assessed on the return.

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jccrew428

I have the same issue. I went through and clicked through those options, but when I go to file, it says that I have to mark on a 8889 form whether I had coverage for self only or family in a HDHP, and it wont let me file unless I choose one of those 2 options. Neither of which is correct...

BillM223

@lrcliffordleslieraye

Do as Annette says and double and triple check with her HR people as to whether her health insurance isn't really an HDHP after all. It is highly unlikely that her employer helped her sign up for an HSA without providing employer-sponsored health insurance that was an HDHP.

Because her employer contributed to her HSA, she must complete form 8889. To start that interview, do a Search (upper right) for hsa and then click on the jump-to result. TurboTax will generate the 8889 based on your answers.

@jccrew428

If you do not have an HSA nor HDHP coverage, you will need to delete any HSA information in order to be able to file. Please do the following:

******

It is possible to accidentally indicate to TurboTax that you had an HSA when perhaps you didn't. If you did not have an HSA, please do the following to remove all traces of HSA information from your return.

See this ===> NOTE: if you see a question "What type of High Deductible Health Plan did you have any December 1, 2018?" (yes, 2018), be sure to answer "NONE".

1. make a copy of your W-2(s) (if you don't have the paper copies)

2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen

*** Desktop***

3. go to View (at the top), choose Forms, and select the desired form. Note the Delete Form button at the bottom of the screen.

*** Online ***

3. go to Tax Tools (on the left), and navigate to Tools->Delete a form

4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)

5. go back and re-add your W-2(s), preferably adding them manually

6. continue with your return.

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BlindFaith

I have this same issue and it is preventing me to e-file. My employer put money into a HSA for me when I don't have a HDHP. I marked this as excess but I am still getting an error on form 889-T box 1 asking me to select self or family for which HDHP I had. It should let me select none or at least submit this form regardless.

BillM223

There is no reason why you can't e-file.

When TurboTax asked if you had HDHP coverage, you replied that in no month of 2024 did you have HDHP coverage, right?

This will make the numbers on the 8889 correct.

Then, when you come to the Review and see the request to enter Self or Family on Line 1, enter either one (I usually suggest Self, but either one is fine).

This is a workaround for that part of the Review, to allow you to complete your return.

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BlindFaith

Q: When TurboTax asked if you had HDHP coverage, you replied that in no month of 2024 did you have HDHP coverage, right?
A: Yes is there somewhere I can see that in the forms sheet? I just want to make sure it is mentioned somewhere so that I can be sure the IRS will understand them when they are received.

"Then, when you come to the Review and see the request to enter Self or Family on Line 1, enter either one (I usually suggest Self, but either one is fine)."
If this were filed by mail would it just be left blank instead or would they expect a response?