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 ..

[JuneB]

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.

[BMcCalpin · Accepted solution]

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.

[JuneB]

Thanks so much!