BillM223
Employee Tax Expert

Deductions & credits

If you removed the excess contributions for 2020 in early 2021, then you don't report the earnings until 2022. You should receive a 1099-SA in very late 2021 or early 2022 with the earnings in box 2 and the distribution code of "2" in box 3.

 

You should just withdraw the excess in 2021, and let the HSA custodian calculate the earnings and send them to you when they send them. You don't owe tax on the earnings that you withdrew in 2021 until you do your 2021 tax return - in early 2022.

 

So just enter the amount of your actual excess contributions for 2020 in TurboTax - the earnings will be taken care of later.

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