If filing separately can I override HSA limit to $7100? Taxpayer has family coverage/HSA. Spouse has no health ins - is covered by T. Line 6 of 8889 Default was $3550.

Forum|Forum|5 years ago
April 18, 2021
2 replies
20 views

My research - no IRS limit for a separate return - just $7100 total for family coverage. Not exceeding that since spouse will not use any of that $7100 max. So should be okay to override line 6, right?

ProConnect Tax

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TaxGuyBill

Level 15

Is Line 1 checked for Family Coverage? I would think that would populate the correct amount on Line 6.

Yes, you need to do whatever is needed to get Line 6 to show the proper amount. But the program should have a way to have it populate the correct number without you using overrides.

qbteachmt

Level 15

What does this mean: "My research - no IRS limit for a separate return"

Of course there is a limit. If this person has no policy, they are not entitled to an HSA contribution deduction and any contribution made into the other's HSA account is from the spouse that has the coverage, and that would be an allocation from that spouse's limit.

"So should be okay to override line 6, right?"

Did you mark the Right Return as the person having the Policy? One Family, one not at all.

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gregandrewsAuthor

Level 3

Sorry, I misspoke saying "no limit." I meant that there is nothing different - no special limitation that applies to MFS (separate) returns. So a taxpayer who qualifies to take $7100 for family coverage on a Joint return can use that same limit if the taxpayer files separately. Of course the other spouse could not claim any deduction (or exemption) on form 8889 for an HSA.

The reason I ask is that when I copied the joint return data and changed/removed items to make it a separate return, ProConnect cut the $7100 amount which was on the MFJ return by 1/2 to $3550. I changed it back (override) and no errors appear, but wanted to ask if the community agrees that it's acceptable to do this.

I think the consensus is "yes."

qbteachmt

Level 15

"but wanted to ask if the community agrees that it's acceptable to do this.

I think the consensus is "yes.""

I think the consensus was: Did you mark that the taxpayer has Family Coverage for the Qualifying plan? That selection should take care of the Function.

Don't yell at us; we're volunteers

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