Hello,
Thanks for your responses. I still have some questions:
- 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 the income is taxed in 2024 the year withdrawn.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
- Fidelity confirmed that the 1099-SA for both the Excess Contribution and the Earnings will be dated for 2024. Wouldn't I need to enter a "fake" 2023 1099-SA in order to get the contribution on 14b? Would it be OK to put both on 14b in 2024 as long the contribution ends up in "Other Income" in 2023?
- 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
- NYs tax return is a percentage of the NY taxable income to Federal. It basically asks for any items that are on the federal return that are a NY source to be included in the NY column as well. Given that the HSA Excess Contribution ($321) is originally from a NY source I think this should be included in the NY column, do you agree?
