Hi,
My husband and I are working on HSA f8889. His 2022 W2 shows box 12 code W $8,300.00. We received two form 1099-SAs for 2022 from employer. One has 1. Gross Distribution $200.00, distribution code 1, normal distribution. The second form has 1. Gross Distribution $500.00, earnings on excess contributions 0, with distribution code 2, Excess contributions.
We're at an impass on f8889 line 9 and line 14a, 14b. He entered 0 for line 9, (employer contributions made to your HSAs) and I entered 8300.00.
For f8889, I entered 14a 700.00, 14b 500, 14c 200.00. He entered 14a 200.00, 14b 0, 14c 200.
His reasoning line 9 is zero because "the premiums come out of my check, pre-tax."
My reasoning is that instructions for line 9 state, "These contributions should be shown in box 12 of form W-2 with code W."
His reasoning for line 14a and 14b is that the 500.00 was never "distributed". The "contribution" was shifted from 2021 to 2022. He filled out a form from the financial institution, "Return of Excess Contribution" chose A, "redeposit full amount of excess contribution made in prior year plus earnings back into this HSA as a conbtribution for the current year" doing so before the tax filing due date.
Does this mean we do not need to put this figure anywhere on any tax form, that this information on 1099-SA is just for information purposes? I also looked at Additional Taxes on Qualified Plans, f5329, and the instructions for line 47 are vague for my thinking and I came to the conclusion that this form isn't necessary for our situation.
Once again, thank you in advance for your help! It's Friday and I'm sure you are very busy and looking forward to the weekend.
