- Form 8889 line 9: Even though these contributions were removed as an excess distribution from my HSA custodian in 2024, the full amount of $3,850 from box 12 code w of my W2 should be reported, is that right?
you report what is in box 12 which should be the 3850.
- Form 8889 line 14b: Should the excess contribution + earnings be on my 2023 return or my 2024 return? I understand that because the excess distribution was made in 2024, the 1099-SA reporting it will be dated 2024. ( which you'll receive in 2025)
on your 2023 for 8889 you indicate you withdrew the excess contribution only. the income is taxed in 2024 the year withdrawn. the excess HSA contribution will show as taxable income for 2023
- Income: For 2023, the excess contribution is added to 1040 Other Income as it was not included in W2 box 1 and for 2024 the excess earnings are added to 1040 Other Income because it was not distributed until 2024, is that right?
yes the earnings withdrawal for federal purposes gets taxed in the year withdrawn
- How does this get reported on my NY IT-203 this year? It looks like the $321 should be in both the federal and state boxes of Line 16 Other Income as this was from a NY source.
generally, federal info flows to the state return so it would flow to the NY return as taxable income in 2023
