- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Because you used an HSA-linked debit card, you need to contact the HSA bank to see how they treated the refund. It should be treated as a "return of mistaken distribution" but you may need to tell them that. There's a chance it was treated as a withdrawal and a new contribution.
Also, is this something that happened in 2023, or did this happen in 2022 and you are preparing your 2022 tax return? If it happened in 2022, what does your 1099-SSA say, does it include the camera cost as a withdrawal or not? And does the bank record an extra contribution? It might end up being a non-qualified withdrawal which is subject to penalties, but you might also have an extra contribution to report that might be deductible. Check your account statements or call the bank.
If this happened in 2023, you don't have to worry about reporting it for a while, but you need to contact the bank soon anyway to get it straightened out.