So I have a Standard Employer High Deductible Health Plan accompanied by an HSA account. In 2023, I contributed the maximum allowed and I am over 55 and my employer contributed the last $1000. So no excess contributions. And of course this is all pretax money. My employer gave me a 1099-sa as expected. I spent over $6000 of this HSA on medical expenses in 2023.
So here is the part I do not understand. After I input all the information into the TurboTax software from the 1099-s along with my 2023 HSA spending, it gives me this big credit on my taxes. That is a bit concerning to me because this HSA money is already pre-taxed. Am I missing something here or is this the intended way the government set this up? I have found no information backing up what I am seeing in TurboTax.
