When doing my taxes for 2020 I discovered that my employer accidentally contributed $800.00 to my HSA in January of 2020. I was not eligible for an HSA in 2020, nor was it reported on my W2 as income. I discussed this with my employer, and they called the HSA company who made an adjustment distribution this month (March) of $800.00 giving the money back to my employer. The HSA company says because the contribution was made in 2020, and the adjustment made in 2021,the $800 will still show as a contribution in 2020 and I'll get a 1099 in 2021 to show the removal.
I'm really confused as to how I need to report this on my taxes. I no longer have the money, but do I need to report it as income in 2020 and somehow take it away in 2021? As I said it was never on my W2. I reported it as an employer contribution not reported on the w2 in turbotax and they added it on to my income. I have not filed - just want to do this right or see if there are any other forms or documention I need to get from my employer or the HSA company.
