BillM223
Expert Alumni

Get your taxes done using TurboTax

"My 2021 return says I would withdraw $329, but now the 1099-SA says I withdrew $800. Will this case any problem?"

 

No, you fixed this when you filed a form for Mistaken Distribution with the HSA custodian. In theory, you owed income tax and 20% penalty on the overage of the withdrawal (800-329) which require you to amend your 2021 return, but I would not amend your return, but would just keep good documentation of what you did and why. Since you filed a form for mistaken distribution, you undid that distribution.

 

"Did you overfund your H.S.A in 2021? I answered Yes" On the contrary, answer NO. When you withdrew the excess, you "cured" it. The question wants to know if you carried over the excess (which, I agree, is not what it appears to ask). You did not have a 5329, which just shows that there was no excess carried over, so just say NO.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"