You have until the tax filing deadline (April 18, 2017) to
repay amounts that you were reimbursed for by your insurance company. You would
repay by depositing into your HSA account. This repayment is considered an
adjustment to your HSA, not a contribution.
If you do not repay your HSA account, the amounts withdrawn
that were reimbursed will be considered a non-medical distribution and will be
subject to a 20% penalty tax. In Turbo Tax you would indicate no that you did
not use the distribution for medical expenses.
See screenshot below. The Turbo
Tax program will calculate the penalty and complete the correct forms.
To answer HSA questions, go to the LESS COMMON INCOME
section and select Start next to 1099-SA, HAS, MSA.
