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JuneB
New Member

In 2015, I had excess contributions to HSA that were corrected prior to the deadline for filing 2015 return. I received a corrected Form 5498-SA and filed my taxes ..

using the corrected amount. In 2016, I have received a Form 1099-SA reflecting the amount of the correction as a distribution, coded 2. Do I report this on my 2016 return? The bank for the HSA is telling me I don't need to since I reflected the corrected contribution amount on the 2015 return.
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Accepted Solutions
BMcCalpin
Level 13

In 2015, I had excess contributions to HSA that were corrected prior to the deadline for filing 2015 return. I received a corrected Form 5498-SA and filed my taxes ..

Your bank is right that it may not affect your refund, but since the bank sent a copy of the 1099-SA in 2016 with the code of "2" to the IRS, go ahead and add the 1099-SA to the 2016 tax return (if it's the second 1099-SA for 2016, then click on "Add Another 1099-SA").

The distribution with a code of "2" will generally not increase your taxable income. If there is an entry in box 2 ("Earnings in excess contributions"), then this amount will be added to your taxable income, but this is usually very little if anything.

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2 Replies
BMcCalpin
Level 13

In 2015, I had excess contributions to HSA that were corrected prior to the deadline for filing 2015 return. I received a corrected Form 5498-SA and filed my taxes ..

Your bank is right that it may not affect your refund, but since the bank sent a copy of the 1099-SA in 2016 with the code of "2" to the IRS, go ahead and add the 1099-SA to the 2016 tax return (if it's the second 1099-SA for 2016, then click on "Add Another 1099-SA").

The distribution with a code of "2" will generally not increase your taxable income. If there is an entry in box 2 ("Earnings in excess contributions"), then this amount will be added to your taxable income, but this is usually very little if anything.

View solution in original post

JuneB
New Member

In 2015, I had excess contributions to HSA that were corrected prior to the deadline for filing 2015 return. I received a corrected Form 5498-SA and filed my taxes ..

Thanks so much!
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