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Common questions about Form 8889 Health Savings Accounts (HSAs) in Lacerte

by Intuit Updated 1 year ago

Use Screen 32.1 to enter information and amounts for Health Savings Accounts (HSAs) (8889). See below for common questions.

To enter Qualified unreimbursed qualified medical expenses:

  1. Go to Screen 32.1,  HSA/MSA/LTC Contracts.
  2. Locate the Health Savings Accounts (8889) section.
  3. Enter a 1 or 2 in, Type of coverage 1 = self-only, 2 = family.
  4. Scroll down to the Distributions section.
  5. Enter the amount in, Qualified unreimbursed qualified medical expenses paid using HSA distributions (and not entered elsewhere).
  • To generate the Federal form 8889, you must make an entry in the field labeled Type of coverage: 1 = self only, 2 = family for the taxpayer and/or spouse in Screen 32, (HSA/MSA/LTC Contracts)
  • If there are HSA contribution amounts in Screen 10, Wages, Salaries, Tips, and the same contribution amounts in Screen 32.1 Health Savings Accounts (8889), then an excess tax will be generated.  If the contributions were made through the employer, no company contribution amounts should be input in Screen 32.

Form 8889, Line 6 is automatically generating 50/50 between taxpayer and spouse that have separate HSAs and Family Coverage. How do I allocate a different amount on Line 6 if the Taxpayer and Spouse's contributions were not 50/50?

  1. Go to Screen 32, HSA/MSA/LTC Contracts (1099-SA, 5498-SA)
  2. Enter a 2 in Type of Coverage for Taxpayer and Spouse
  3. Enter the amount of contributions in HSA Contributions that you made (press F1) (1 = maximum) for Taxpayer and Spouse
  4. Enter the same amount in Allocable share of limitation (8889, line 6)[O]  Taxpayer and Spouse.

This entry will override Form 8889, Line 6 for both Taxpayer and Spouse and remove any additional tax on excess contributions to HSA (Form 5329).

Related Topics:

Lacerte Tax

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