@dmertz wrote:
On Form 1099-SA with code 2 TurboTax properly only treats any amount in box 2 as taxable, not the amount in box 1. TurboTax probably shows on a summary screen that there was income equal to the amount in box 1, but that would be nontaxable income in this case.
I can confirm that if I enter a 1099-SA with code 2, the returned amount is not added to my taxable income and does not change my tax or refund. On the HSA summary, both my regular distribution and my return of excess are included in "total distributions" but my taxable distributions is zero.
@wllmk
If your return of excess is listed in the "taxable distribution" line, make sure the 1099-SA has code 2, and make sure you selected code 2 when you entered the 1099-SA in the program.
