Instructions for Form 8889 (2020)Internal Revenue ServiceNew Options and Processes for - Thrift Savi-2025

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You must always file a Form 8889 in any year you or an employer contributes money to your HSA or you make withdrawals from the account. The deduction you calculate on Form 8889 is taken on the first page of your income tax return.
Put simply, the IRS uses Form 8889 for HSA reporting. If you hold an HSA account (or are the beneficiary of a deceased HSA holder), youre required to attach Form 8889 to your Form 1040 when filing your personal income tax or information return. If you fail to do so, youll be unable to deduct your HSA contributions.
This is caused by the fact that TurboTax does not acknowledge that an HSA could exist without a high deductible plan. Hence it will insist on you filling out a form 8889, even though there is nothing to put on it. When you try to not fill in the radio buttons on 8889, TurboTax will not let you e-file.
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If you have not yet gone through the Health Savings Account (HSA) section under Deductions and Credits, then your contribution will be shown as taxable on your return.

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Then enter the HSA contribution amount on line 2 (do not include any amount entered on screen W2, box 12, code W). The total distributions from Form 1099-SA may be entered on the 8889 screen, line 14a. Be sure to enter qualified medical expenses on line 15 that would not be included in the taxable amount distributed.

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