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

You can use the Health Savings Accounts (8889) section in the HSA/MSA/LTC Contracts (1099-SA, 5498-SA) screen to make entries for a health savings account in Intuit ProConnect. See below for common questions.

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Where do I enter Health Savings Account (HSA) contributions?

• 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)

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Entering Qualified Medical Expenses Paid to Offset Contributions to HSA

1. Go to Input Return ⮕ Deductions ⮕ 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).

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Why is the Form 8889 not completed when information has been entered on the W-2 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 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.

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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 weren't 50/50?

1. Go to Input Return ⮕ Deductions ⮕ 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).

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Where do I enter state taxable interest or dividends from an HSA?

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. Go to Input Return ⮕ Deductions ⮕ 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.

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