I entered the 1099-SA for the $777.19 distribution (Excess HSA contribution removal) onto Turbo Tax with Distribution code 2.
The next screen says "Tell us if your excess HSA/MSA contribution was made by your employer and deducted from the wages in box 1 of your W-2".
I made all 12 months HSA contribution via payroll deduction to Health Equity in 2024, removed the $777 excess contribution on 5/23/2025 from Health Equity.
Should my answer be NO since the excess HSA contribution was not deducted from wages in box 1 of my W-2 because I removed it from my HSA account at Health Equity?
Turbo Tax didn't ask “Did you pay for anything with this distribution or Was this a withdrawal of excess contributions?” or ask Did you already report this?
What should I do?
