dmertz
Level 15

Get your taxes done using TurboTax

Code 1 on a Form 1099-SA only indicates that there was a regular distribution.  It does not mean that it was necessarily used for qualified medical expenses.  It up to the filer to indicate the amount amount was used for qualified medical expenses (which TurboTax asks for upon entering a code-1 Form 1099-SA and was apparently done).

 

An amount on line 8e can also be from the taxable amount shown on a code-2 Form 1099-SA reporting a return of excess contribution.