BillM223
Expert Alumni

Get your taxes done using TurboTax

So as you were doing your 2022 tax return in TurboTax, TurboTax told you that you made excess HSA contributions to the tune of $2,890, right? And when TurboTax asked, you agreed that you would withdraw the $2,890 before the due date of the return, right? And this $2,890 was contributed through your employer, right? That is, it was part or all of the code W amount in box 12 of your W-2, right?

 

If the above is true, you don't need to do anything in terms of reporting the excess as income, because as soon as TurboTax detected the excess, it added the excess back to Other Income on your 2022 tax return - you don't have to.

 

And, yes, you should receive (in most cases) two 1099-SAs - one for the distribution of the excess back to you and the other for the earnings on the excess while it was in your HSA (this will go on your 2023 tax return). As for when you will receive these 1099-SAs it varies somewhat (and it could be just one combined), but the 1099-SA with the earnings on the excess could come as late as late 2023 or even early 2024 (for entry into the 2023 tax return).

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