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lillrob
New Member

I filed my taxes and the next day I received a 1099-SA from Optum Bank for a gross distribution on $115.20 from a HSA. Do I need to amend my return?

 
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I filed my taxes and the next day I received a 1099-SA from Optum Bank for a gross distribution on $115.20 from a HSA. Do I need to amend my return?

Yes.

The IRS requires you to file a form 8889 if you made contributions to or received distributions from your HSA. The 1099-SA is a report on distributions made from your HSA.

But before amending your return, do the following because your original return is still being processed by the IRS:

1. If you are expecting a refund, wait until you have received the refund.

2. If you owed the IRS money on your return, wait at least three weeks to make sure that they have finished processing your tax return.

Note: while you are waiting, the odds are high that the IRS will send you a letter asking you for form 8889. This is the form that reports on your contributions to and distributions from your HSA.

Read the letter carefully and follow the instructions. In this case, the IRS will likely not want you to file an amended return, but only reply to the letter and attach your 8889. Do whatever the letter tells you to do.

If after 4 weeks, you don't receive this letter, then go ahead and amend your tax return, going through the HSA interview under Deductions & Credits. This will be to your benefit, because the IRS assumes your distributions are taxable unless you complete and file the 8889.

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