TeresaM
Expert Alumni

Get your taxes done using TurboTax

It depends. Because the income was pulled pre-tax for the high deductible health plan, it became taxable income when it was returned to you. If they did not withhold any taxes at the time of the return, which would need to be documented on your Form W-2, then you should not need to have a corrected form.

Excess or returned funds from your HSA should indeed appear on your Schedule 1, line 8e. To be sure that you were not accessed a penalty during this process when you complete your return and print or save a copy before filing, please check Schedule 2, lines c and d. This will show any penalties added to your tax liability, and the details will be in  Form 8889 Health Saving Accounts.

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