Hello, because of an accidental Medicare enrollment, my husband over-contributed to his employer-sponsored HSA in 2022. He withdrew the overcontribution in March 2023, just before the filing deadline. On our 2022 tax return, we reported and paid tax on the withdrawn amount (Form 8889 and 1040 Schedule 1, Additional Income). There were no earnings, due to a market decline, so we only withdrew the excess contribution amount. In early 2024, we received a 1099-SA from the HSA custodian, showing the gross distribution amount, no earnings, and distribution code 2. I can't seem to find a way to enter this into TurboTax. The TT HSA questions never produce an entry screen for a 1099-SA and never ask if we had earnings. Will the IRS be expecting this information on our return? Or, will they match the distribution amount on the 1099-SA with the income we reported on our 2022 return? Should I simply keep a copy of the 1099-SA with the supporting documentation for our 2023 return in case there is ever a question?
Thank you.
