This money was already included as part of my taxable income as I never deducted it. What would need to be amended in my 2019 tax return?
My bank is Fidelity and they don't seem to have a form for Return of Mistaken Contribution. They have Return of Mistaken Distribution (for me to return the distribution to the bank), which I can do now - and Return of Excess Contribution (for them to return an excess contribution to me) however the form says an excess contribution can only be submitted before the tax-filing deadline of the year for which the excess contribution was made.
The only thing that happened was that I mistakenly opened an HSA account and put money in, then took it right back out (with a couple months in between). I never deducted it or mentioned anything about an HSA on any tax return.
I read online that if an HSA was opened for an ineligible person, it really wasn't ever an HSA. The whole thing was really just a clerical error - money into an account, then withdrawn once the mistake was realized. I'm wondering why the IRS would feel I owe anything other than tax on the $25 interest earned while it was in the HSA account. Do you think there is any simple way to make this happen?
