I need help with reporting a taxable HSA distribution made in 2021 that was reported on my 2020 return and on which I have already been taxed. Here's the story: I applied for Medicare when l retired in March of 2021. The effective date of Medicare was post dated to 7/1/20, so for tax year 2020 I was ineligible to contribute to an HSA after June 30, but continued to contribute to my HSA as I did know Medicare coverage would be post dated until March of 2021. I withdrew the excess contributions from my HSA in 2021 before the May, 2021 tax filing deadline, and used TurboTax to report this "distribution" on my 2020 tax return, and the amount of the distribution was reported as Additional Income on Schedule 1, Line 8, and a Form 8889 was generated. But Form 5329 was NOT generated. Now, for tax year 2021 the distribution of the excess contribution is reported by the HSA bank on Form 1099-SA. When I input this form into TurboTax 2021 and report the distribution as "not for medical expenses", the distribution ends up on Schedule 1, Line 8e "Taxable Health Savings Account distribution", and I will be again paying taxes on the distribution for the second time, having already paid with my 2020 return. And again, TurboTax 2021 does not auto-generate Form 5329. And when I use "Forms" to open Form 5329-S I am unable to input data into some of the fields. Similarly, if I try to amend my 2020 tax return and enter data into Form 5329-S I am unable to enter data into certain fields. Can anyone help me solve this problem? How can I ensure that I will not again be taxed in 2021 for the distribution that I was taxed on in 2020?
