Common questions on Form 8889 Health Savings Accounts (HSAs) in ProConnect Tax

• HSA contributions made by your employer will be calculated automatically based on W-2 input
• Additional input for HSAs can be found under Deductions > Health Savings Accounts
• The entry Type of coverage: 1=self-only, 2=family is mandatory to generate Form 8889
• Taxpayer contributions should be entered in HSA contributions that you made (1=maximum)

1. From the left of the screen, select Deductions and choose HSA/MSA/LTC Contracts (1099-SA, 5498-SA).
2. Select Health Savings Accounts (8889).
3. Locate the Health Savings Accounts (8889) section.
4. Enter a 1 or 2 in Type of coverage: 1=self-only, 2=family.
5. Scroll down to the Distributions section.
6. 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 on the Health Savings Accounts (8889) screen. 
• If there are HSA contribution amounts on the Wages, Salaries, Tips (W-2) screen, and the same contribution amounts on the Health Savings Accounts (8889) screen, then an excess tax will be generated. If the contributions were made through the employer, no company contribution amounts should be input on the Health Savings Accounts (8889) screen.

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 weren't 50/50?

1. From the left of the screen, select Deductions and choose HSA/MSA/LTC Contracts (1099-SA, 5498-SA).
2. Select Health Savings Accounts (8889).
3. Locate the Health Savings Accounts (8889) section.
4. Enter a 2 in Type of coverage: 1=self-only, 2=family.
5. Scroll down to the Contributions and Deductions section.
6. Enter the HSA contributions that you made (1=maximum).
7. Enter the same amount in Allocable share of limitation (8889, line 6) [Override].

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).

The bottom of 8889 input screen has fields. Make note or give specific example for California that you'd enter state taxable interest here to get an adjustment on Sch CA column C.

1. From the left of the screen, select Deductions and choose HSA/MSA/LTC Contracts (1099-SA, 5498-SA).
2. Select Health Savings Accounts (8889).
3. Scroll down to the State HSA Taxable income {} section.
4. Enter any applicable fields.
   • For example, if you had any state taxable interest for California, you'd enter it here to get an adjustment on Schedule CA, column C.