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2 HSA accounts, change from family to single coverage mid-year

Level 1

Trying to figure out how to enter this scenario: Spouse maintains an HSA through her employer-provided health insurance. The taxpayer had been on the insurance until June 1, at which time he went on Medicare and did not stay on her policy. So, her insurance was family coverage through 5/31, and single coverage from 6/1 thru 12/31. To complicate things, she opened up a 2nd HSA, so she has 2 HSA accounts, and contributed a total of $6512 throughout the course of the year into these HSA accounts, and am concerned she may have over-contributed. I have no idea how to enter all of this in the program. I know she will need 2 separate Forms 8889, but am at a loss as to how to generate these. 

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Level 9
Level 9

I don't think that you do file 2 Forms 8889.

I use Lacerte, which generally has similar input screens. In Lacerte, I check Self-only coverage, then enter 7 months eligible for self-only coverage, and 5 of months eligible for family coverage. Lacerte calculates a maximum contribution of $5,958 and automatically carries $554 to Part VII of the 5329 as excess contributions.

I usually do the calculation in Excel to double-check, because Lacerte doesn't produce a worksheet. I have not done so on your behalf.

Level 15

Your client's Spouse was the Policy holder, so the HSA belonged to her all along, and the second also is hers, like deciding to put some into a different HSA account because it offers investment options not offered in the first. However, it is all treated as One HSA for purposes of limitation and qualification (HDHP). You also can pay Medicare Premiums from the HSA account(s), as long as the spouse is a qualified person.

And that means you only need one 8889. Because the "taxpayer" never owned an HSA.

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