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Category: Adjustments

How do I figure my "limitation" for Form 8889?

If you are filing Form 8889 for an HSA Deduction, there is a limitation to the amount of deduction that you can take. For Self-Only coverage under your HSA, the limitation is $3,250 ($4,250 if you were age 55 or older). For Family coverage, this limitation is $6,450 ($7,450 if you were age 55 or older). TaxSlayer will automatically calculate your limitation if you had Self-Only coverage, or if you had Family Coverage and you and your spouse did not have separate HSAs. If you had Family Coverage AND you and your spouse had separate HSAs, you will have to manually figure your limitation.

You have to determine your limitation by looking at each month of the tax year to determine if, for each month, you were an eligible individual. The IRS provides a worksheet to calculate the amount of this limitation. It is located within the instructions for Form 8889, which you can access using the link below. Before filling out the worksheet, read the brief instructions for "Line 3" that begin at the top left of page 4. These instructions list exceptions that can affect how the worksheet gets filled out.

The worksheet that must be completed is also on page 4 of the instructions. Complete this worksheet and retain a copy for your records. Once this worksheet has been finished, you can properly complete Form 8889 for your HSA Deduction by entering the calculated limitation amount. Form 8889 can be found within TaxSlayer by going to Federal Section > Deductions > Enter Myself > Adjustments > Health Savings Account.

Form 8889 Instructions and limitation worksheet

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