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

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

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Entering Qualified Medical Expenses Paid to Offset Contributions to HSA

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).

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Why is the Form 8889 not completed when information has been entered in Screen 10, Box 12a with a Code W?

• 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.

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Form 8889 Line 6 Taxpayer and Spouse have separate HSAs and Family Coverage

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).

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Related Topics:

• Health Savings Account (HSA) Contributions for Form 8889
• How to enter Form 1099-SA Health Savings Account information in Lacerte