Thank you, I appreciate all your time working on helping me. What you've said is very helpful in understanding how this all works. A few questions re what you said above:
I'm ineligible to have an HSA. I'm a dependent on someone else's tax return and can't have an HSA until I'm independent (a few years away). How could I use this money now for medical expenses as I'm ineligible for an HSA?
Re issuing an amended 2019 return: Would I report excess contributions to an HSA even though I'm a dependent and don't have an HSA? Is there a 6% penalty to mistakenly open an HSA account, contribute to it and pay tax on that money? It seems strange there would be these penalties for a mistake where I've had no financial benefit and the IRS has lost nothing from my mistake.
If I do keep the distribution now, would I have to pay taxes a second time on that same money along with the 20% penalty?
