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Get your taxes done using TurboTax
For my own understanding, will the $18 that I have now included in my 2022 return as Miscellaneous Income/"HSA distribution" be taxed at my marginal rate for 2022 even though I plan to apply it to a medical expense from 2022 (by saving/noting a bill with my personal tax records)? It's obviously not a big deal to me if it is, just want to be sure I understand it. And there is no 20% penalty on this amount ($18) as I am applying it to a medical expense from 2022, correct?
Thanks again for all your help.
‎April 10, 2023
7:57 PM