HSA catchup system calculation issue.

[midwesttaxinc]

Clients file jointly, have family HDHP, both are over age 55.  HSA accounts are split between husband and wife so husband can also utilize the $1000 catchup.  Cannot get Proseries to let me add the husband's catchup to the 8889 for him without selecting a HDHP coverage option which is creating a separate set of problems since they are on one health insurance policy.  Is there a checkbox I'm missing somewhere that makes this easier??  New to Proseries this year and navigating where these things are gets a bit tricky.

Thanks to anyone who can help me out!

[rbynaker · Accepted solution]

These can be quirky but I can get you started.

You'll need both 8889-T and 8889-S.  You'll mark on both forms on the Line 3 Smart Wks that they have Family coverage.  There's a line 6 Smart Wks where you can allocate the $6,900 amount between the two of them (mostly ProSeries takes care of this automatically though).

The "extra" $1,000 each doesn't kick in until line 7 of each separate 8889 so it isn't (and can't be) allocated between spouses.  Sounds like you know this though and kinda know what you're doing, you're just fighting with the data entry.

You mentioned encountering problems by marking them both as covered under a family plan, what problems are you encountering when you do that?

Rick

[midwesttaxinc]

I think my issue was arising from not finding the allocation between the two on line 6.  So the system was seeing both as having family plan coverage at $6900 contribution and was thinking there was a problem. Which there is - operator error. LOL  Appreciate the assist!

[rbynaker]

You're welcome.  It's refreshing to answer questions from someone who actually understands what they're doing!  Stop back in if you run into any more problems.  We're just volunteers but we usually do a pretty good job.  There's no "barn door" here so, unfortunately we get questions from DIY folks just doing a google search or folks who really have no business preparing tax returns for money, "what does under 24 mean?", "can I deduct expenses for my gaurd dog?"

[midwesttaxinc]

Hey, just an update, your "fix" was the fix and I'm happy to no longer look dumb for my clients!  🙂  Thank you again!!  Up in my area we have a LOT of those DIY folk that like to do returns for people on the online software and without their name attached anywhere so it looks like the taxpayer prepared their own. But the refund always gets deposited into the DIY person's account...hmmm...