Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

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Valued Pioneer
Posts: 3
Registered: ‎03-22-2016

HSA Distributions

I have an HSA, which was reported on my W2, box 12, code W. But I didn't pull any money out of it (I still haven't to date). But when I do the wrap-up, it says I need to fill out the HSA section under Adjustments and Deductions. When I go there, that's when it talks about distributions and taking money out, which I didn't do. It also mentions getting the information I need from Form 1099-SA. I don't have one of those. Where have I gone wrong here? I am totally lost!

Tax Pro
Posts: 1,445
Registered: ‎09-04-2014

Re: HSA Distributions

Good morning.

Have you included form 8889 with your return?  Since you had a contribution that form is required. 

BettyB
Sr. Tax Analyst
Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: HSA Distributions

Hi jloise523,

 

Since you have an HSA account, you will need to attach Form 8889 to your return.  If you didn't make any contributions other than than one through work and you didn't take any distributions this will be easy to complete.  The contribution amount from your Form W-2 will automatically carry to the Form 8889.  If you have not taken any distributions, then you can either leave that part blank or enter 0 on those lines.  Once you've done these couple of things, you're done with this part of the return.

 

Hope this helps.

Valued Pioneer
Posts: 3
Registered: ‎03-22-2016

Re: HSA Distributions

I followed your instructions, but I'm still getting this at wrap-up:

"We've calculated excess HSA contributions for you. If you feel this doesn't apply to you, review your answers in the 1099-SA and 5498-SA Health savings account (HSA) topic in Adjustments and Deductions. Make sure you didn't enter 2016 contributions or duplicate your W-2 contributions. If you do have excess HSA contributions, you'll need to enter a fair market value for your HSA. This amount is in box 5 of your Form 5498-SA. Click Fix Issues then Add Item. Tell us you contributed too much and check the corresponding box. Click Next and Next again and enter the amount."

I don't have Forms 1099-SA or 5498-SA. I've had the HSA for about six months now.

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: HSA Distributions

Hi jloisel523,

 

Did you enter your contribution both on your Form W-2 and in the HSA section?  If so, you need to remove any dollar amounts that you entered in the HSA section and this should clear the error.  I suspect that you probably just entered the amount that was on the Form W-2 in another location also.  The dollar amount from your Form W-2 will automatically appear on your Form 8889, so since all you had was the contribution for work you don't need to enter any dollar amounts in the HSA section or add any Forms 1099-SA or 5498-SA.

 

If you double-check everything and the error persists, another option is to call client services at 1-800-HRBLOCK or send your return to a tax professional in your area using "best of both" so that someone can actually take a look at it and see what's going on.

Valued Pioneer
Posts: 3
Registered: ‎03-22-2016

Re: HSA Distributions

Thank you again for your help. I'm still getting the error, even though I've gone through the forms several times. I'm almost positive that I didn't enter the contributions twice, but I'll look over it all one more time and if I'm still having problems, I'm going to take my things in to a professional. But thank you for your help.

Valued Pioneer
Posts: 3
Registered: ‎04-03-2016

Re: HSA Distributions

Did you ever get an answer to this? I'm having the same problem, totally stuck and getting really annoyed with H&R Block as this is obviously an error on their site. I for sure did not enter my w-2 information anywhere else and I don't need this form, but it won't let me continue without it. I saw someone else had this probelm back in February and they still haven't fixed it on the site-  I'm extremely disappointed with the responsiveness and customer service. . .

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: HSA Distributions

You're welcome.  If you're going to go with having a tax professional look at it, you can send it to one in your area with "best of both" option.  The "best of both" service will cost you $80, much less than a visit to the tax office.

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: HSA Distributions

Hi BelgBC,

 

After seeing this issue being asked about on here so many times I have just run a fake tax scenario through the basic online software in hopes of finding a solution.  I successfully added the health savings information and passed the accuracy review, and another community member with the same issue has confirmed that this solution works and that he was able to e-file his return after going through these steps.

 

On one of the screens after you enter your Form W-2 info the software will prompt you to enter a Form 5498-SA and a Form 1099-SA.  When these prompts appear, leave the entry spaces blank on the forms you do not have and click on the "next" button at the bottom of the screen.  The software will conclude that you do not have any deductible contributions (your only contributions were through work as indicated by the code W on your Form W-2) and it will also conclude that you do not have any taxable distributions.  Once you've done this for the couple of health savings screens you will be good to go on that part.

 

Next, it will ask you a couple of questions.  The answer to health savings eligibility is YES so long as you're not enrolled in Medicare.  The next question will ask if the plan was a self or a family plan, and you can choose whichever it is.  The last question asks if you were eligible for HSA contributions all year long, and you can answer this one with the correct answer for your situation as well.  Then there's a results page and you'll click next and you're done.

 

In order for this to work, you will need to start at the screen where you entered the W-2 information and click all the way through, not entering anything on the HSA screens since you didn't have any of those forms to enter.

 

Hopefully this works for you, but if it doesn't and you're still having trouble please let me know.

Trusted Pioneer
Posts: 6
Registered: ‎04-05-2016

Re: HSA Distributions

Hi LouisH,

 

I am having the same issue as the original poster but my case is a bit different.

I signed up for an HSA when I started working in July.

Before work, (from January to July) I was under my parents PPO plan.

My employer contributed $500 in the year 2015. This is shown on my W-2 in Box 12 next to code W.

I did not contribute anything, but I used $200 for eligible medical expenses.

I am getting the same error:

"We've calculated excess HSA contributions for you. If you feel this doesn't apply to you, review your answers in the 1099-SA and 5498-SA Health savings account (HSA) topic in Adjustments and Deductions. Make sure you didn't enter 2016 contributions or duplicate your W-2 contributions. If you do have excess HSA contributions, you'll need to enter a fair market value for your HSA. This amount is in box 5 of your Form 5498-SA. Click Fix Issues then Add Item. Tell us you contributed too much and check the corresponding box. Click Next and Next again and enter the amount."

 

How can this be possible when the only contribution that was made to my HSA was $500 from my employer?