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Level 3
March 22, 2022
Solved

Form 8889 - client changed employers and only had hdhp coverage for part of the year

  • March 22, 2022
  • 2 replies
  • 13 views

Single taxpayer w/ no dependents got a new job in 2021. From Jan-Sep, TP was covered under old employer's hdhp. From Oct-Dec, TP was covered under new employer's health plan (not a hdhp). On Form 8889 Line 3 smart worksheet, I checked "self-only" for Jan-Sep and nothing for Oct-Dec because new plan is not hdhp. ProSeries is giving me an error. Do I check "none" for Oct-Dec? Taxpayer is not covered by Medicare as the instructions suggest.

 

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Best answer by rbynaker

Yes, check "none" for the three months when they did not have qualifying insurance (or more aptly, when they did have disqualifying insurance!)  The software should prorate the annual contribution limit based on the number of months.

2 replies

rbynaker
rbynakerAnswer
Level 13
March 22, 2022

Yes, check "none" for the three months when they did not have qualifying insurance (or more aptly, when they did have disqualifying insurance!)  The software should prorate the annual contribution limit based on the number of months.

dkh
Level 15
March 22, 2022

The instructions are misleading makes it sound like you check none only if covered by Medicare but you check none if they had none and none if they are covered by Medicare.    

Denise GAuthor
Level 3
March 22, 2022

Yes I completely agree. That's why I wanted to reach out for clarification. Thank you!