Help with filling out form 8889 (HSA Contributions)

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Topic Author
gsk
Posts: 32
Joined: Sun Dec 02, 2012 1:19 pm

Help with filling out form 8889 (HSA Contributions)

Post by gsk »

Hello All,
2013 is my first year since I started participating in HDHP/HSA. Please bear with me as I'm novice and new to HSA and really appreciate all your help.
Here's my overview:
I have chosen HDHP Family plan for myself and my son. My wife has chosen Single HDHP plan from her employer.

My Contribution Details:
HDHP Plan Start Date: 01/01/2013
Employer Contributions : 1200 (Paid Lump Sum in January 2013)
My contributions thru the paycheck : 2000 (Distributed evenly over the whole year)
Employer Reported $3200 on W2 with Code W
No distributions since I have not withdrawn any of the funds and also DO NOT expect 1099-SA form.

My Wife's Contribution Details:
HDHP Plan Start Date: 01/01/2013
Employer Contributions : 1215
Her contributions thru the paycheck : 2035
Employer Reported $3250 on W2 with Code W
No distributions since she has not withdrawn any of the funds and also DO NOT expect 1099-SA form.

We have contributed only thru the payroll deductions and have NOT contributed any thing else outside the payroll deductions.
I'm using TurboTax and confused as what to enter. Can you please help me with this section?

Self:
1) Contributions from Box 12 on your W-2 $3200 (TT automatically entered this amount)
2) Employer Contributions made in 2013 for tax year 2012 : ?
3) Employer Contributions made in 2014 for tax year 2013 : ?
4) Other Employer Contributions not reported on W2 : 0
5) All other Contributions (i.e. contributions not made by : ?
your employer or with payroll deductions.

For item 2, I'm assuming that I can enter 1200. Will it be correct? The main confusion is that employer has contributed in January 2013 for the whole 2013 year. But the question sounds as if the contributions made for 2012 tax year? As I stated earlier, I did not have any HSA plan in 2012 so how come the employer can contribute for tax year 2012?

For item 3, I'm assuming that I can enter 0. Will it be correct? My employer made again a contribution of $1200 this year i.e. 2014 January but I assume that it will apply for 2014 and not 2013?

For item 5, again I'm assuming 0.

My wife's entries are similar to the above one except item 1 shows as 3250 and I'm assuming I can enter 1215 for item 2.
Also, while entering my wife's entries, it asks me an additional question.
Tell us about Spouse's HDHP
1) Was Spouse enrolled in a HDHP as of December 1 2013 : I Selected Yes.
2) Who was covered by this HDHP?
X Spouse only (Selected Spouse only)
My family
3) Was Spouse ever involved in a family plan during 2013 ?
Yes
No
For item 3, what should I select? I'm assuming NO because she was with her plan and not with my HDHP plan.

Thanks for all your patience and appreciate your responses.
gsk
jebmke
Posts: 25271
Joined: Thu Apr 05, 2007 2:44 pm
Location: Delmarva Peninsula

Re: Help with filling out form 8889 (HSA Contributions)

Post by jebmke »

I am not familiar with Turbotax. Normally, what I do is input data directly on Form 8889.

The instructions for the form are pretty easy to follow (even the actual text on the form itself is pretty self-explanatory).

You can download the instructions here:

http://www.irs.gov/pub/irs-pdf/i8889.pdf

Then go to forms mode in Turbotax and fill out the form. Form 8889 is really one of the easier tax forms to complete.
Stay hydrated; don't sweat the small stuff
HouseStark
Posts: 324
Joined: Mon Oct 15, 2012 2:31 pm
Location: Minneapolis, MN

Re: Help with filling out form 8889 (HSA Contributions)

Post by HouseStark »

Your questions are all inquiring about inputs to TurboTax and I can't help you there, but I can tell you what to look for on the output side, that is the actual Forms 8889.
First, there will be two forms, one for you and one for your wife. Your form would indicate family coverage on line 1 and hers would indicate self-only.
Neither form should have any amount on line 2 for HSA contributions. The only HSA contributions should appear on line 9 for employer contributions. Since, by your description your accounting of the total HSA contributions agrees with the amounts reported on the W-2s box 12 under code W, there should be no issue with this.
Neither form should have any amount on line 13 for HSA deduction, since all contributions were by the employer or through an employer cafeteria plan. The one wrinkle I see is that your combined contribution eligibility amount between the two of you cannot exceed the family limit. That is, you cannot add your family limit to her single self-only limit to come up with a higher contribution limit.
If you enter the contributions in the interview as 2013 contributions, I would think that would result in the correct amount on the output forms. Contributions already made in 2014 for tax year 2014 should be irrelevant. Contributions made in 2013 for 2012 should be irrelevant.
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jjustice
Posts: 585
Joined: Tue Aug 04, 2009 9:58 am

Re: Help with filling out form 8889 (HSA Contributions)

Post by jjustice »

Turbo Tax seems to have entered your contributions correctly by taking the code W amount from box 12 in your W2. These pre-tax contributions from you and your employer seem to be all your contributions. They go on line 9 of Form 8889, and zero on line 2. If you, or anyone else, had made post-tax contributions to your HSA they would go on line 2.
John
Topic Author
gsk
Posts: 32
Joined: Sun Dec 02, 2012 1:19 pm

Re: Help with filling out form 8889 (HSA Contributions)

Post by gsk »

Thanks all for your responses. Based on your responses and reading the instructions of form 8889, I entered the following numbers.
Self:
1) Contributions from Box 12 on your W-2 $3200 (TT automatically entered this amount)
2) Employer Contributions made in 2013 for tax year 2012 : 0 (I didn't have any HSA in 2012)
3) Employer Contributions made in 2014 for tax year 2013 : 0 (My employer didn't contribute in 2014 for 2013)
4) Other Employer Contributions not reported on W2 : 0
5) All other Contributions (i.e. contributions not made by : 0 (I didn't make any contributions beside the payroll deductions.)
your employer or with payroll deductions.

Spouse:
1) Contributions from Box 12 on your W-2 $3250 (TT automatically entered this amount)
2) Employer Contributions made in 2013 for tax year 2012 : 0
3) Employer Contributions made in 2014 for tax year 2013 : 0
4) Other Employer Contributions not reported on W2 : 0
5) All other Contributions (i.e. contributions not made by : 0
your employer or with payroll deductions.

This cleared up the mess and the forms 8889 generated by TT seem to be fine.

Some observations:
1) For spouse 8889 form, even though she had a single HDHP plan I still had to choose it as Family for Line 1 of my wife's 8889 form.
TT has pointed it out as an error and also the following wording can be found in the 8889 instructions.
"Complete lines 1 through 13 as instructed on the form. However, if you, and your spouse if filing jointly, are both eligible individuals and either of you have an HDHP with family coverage, you both are treated as having only the family coverage plan. Disregard any plans with self-only coverage."
So basically during spouse's TT interview, even though she had single HDHP, I had to select "My Family"

Tell us about Spouse's HDHP
a) Was Spouse enrolled in a HDHP as of December 1 2013 : Yes.
b) Who was covered by this HDHP?
Spouse only
X My family

The TT has outputted the following
Self:
Line 1 : Family
Line 2 : 0
Line 3 : 6450
Line 4 : 0
Line 5 : 6450
Line 6 : 3200
Line 7 : 0
Line 8 : 3200
Line 9 : 3200
Line 10 : 0
Line 11 : 3200
Line 12 : 0

Spouse
Line 1 : Family
Line 2 : 0
Line 3 : 6450
Line 4 : 0
Line 5 : 6450
Line 6 : 3250
Line 7 : 0
Line 8 : 3250
Line 9 : 3250
Line 10 : 0
Line 11 : 3250
Line 12 : 0

I think the numbers are now correct but please let me know if you find any discrepancies. Thanks again for your help.
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