I did receive 1099 SA for 2021 prior to my discovery about part of my HSA contributions that were not eligible as of September that year when I signed up for Medicaire Part A. (4 months of the year). I had Employee Health Insurance and the HSA which I contributed to for years. At the time, the nice man at Medicaire whom I called with questions in preparation to signup for the following January (2022), didn't mention to me my HSA contributions would be impacted. He suggested I signup for it at the time because it was "Free" and would save me another 45 minute wait time on a phone call later. I was trying to do my research ahead of time with the phone call. It just never occurred to me to ask about impacts on an HSA. But I do take responsibility for not knowing the impacts this decision would cause me.
The 2021 1099 SA shows the total amount contributed for the year plus a small amount that had been added in 2022 for 2021 from my last week's earnings in 2021. It does not have a code.
As soon as I learned of the HSA excess contribution issue, I withdrew the total amount not eligible (4 months worth auto paycheck deduction+ earnings) prior to filing for April deadline in order to cure the error, pay taxes on it (as it would be considered 2021 income that I had earned without the pre-tax privileges I had received) and to avoid any potential penalties. For 2021 filing, Turbo Tax listed the amount under Other income and Adjustments from Schedule 1 line 10 (and 8 e Taxable Health Savings Account distribution). Because I was over 65 and did not use the excess contribution for medical purposes, it was my understanding to treat it as income for 2021 (which technically it was since it came from my payroll earnings in 2021) , to pay taxes on it as well as the earnings from interest on it. Since I also had pre-tax earnings on the interest which I wasn't entitled to, Turbo Tax had the interest listed under Wages, salaried, tips, etc 2b Taxable Interest. This being a year ago, I am simply guessing that perhaps I entered the earned interest manually. I really don't recall. In any event, I would not receive an amended 1099 SA for 2021 from the bank. There would not have been enough time prior to filing. So...since I reported the income for 2021 and interest earned, paid the tax on both, I am confused about how to handle the 2022 1099 SA without adding income and interest already reported and paid in 2021 tax filing.
