ThomasM125
Expert Alumni

Deductions & credits

The maximum HSA contribution you can make without incurring a penalty for an individual plan in 2019 is $3,500. So, the $5,000 contribution would result in a penalty if you had an individual plan, so that may explain the increase in tax.

 

Also, you need to indicate that you used the HSA distribution reported on form 1099-SA for qualifying medical expenses to avoid that distribution from being subject to income tax.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"