Contribution Rule Limits
While most taxpayers may not contribute the maximum amount allowed to their HSA, you may need to explain these limits to taxpayers. The amount that can be contributed to an HSA depends on the:
If the taxpayer is an eligible individual on the first day of every month with the same coverage for the entire year, the full contribution amount is allowed.
If the taxpayer was not an eligible individual for the entire year or changed his or her coverage during the year, the contribution limit is the greater of the:
A taxpayer who cannot use the last-month rule must use the sum of the monthly contribution limits rule to determine the maximum HSA contribution.
In the software, Line 3 Limitation Worksheet is at the bottom of Form 8889, page 1. You will also need the Instructions for Form 8889. To view the instructions in the software, click anywhere on the form to access the help feature.