Thank you for all the great information. I called back HSA Bank and they insisted to me over the phone that the amount refunded back directly to the HSAs by the hospital is NOT going to be reported as a contribution for 2022. They said they it is considered as a refund against the original payment from last year.
In that case, if I understand correctly, I should report on my 2021 tax return the full $6000 distribution since that is what is on my 1099-SA.
Then in 2022 I received the refund of $3900, which was recorded by HSA Bank as a "gross distribution" of negative $3900. So if for example I spend $5000 this year on qualified medical expenses (which I will), then on my 1099-SA for 2022, it will show $5000 - $3900 = $1100; is that how it works? Then the total distributions over a 2 year period will be correct.
In this situation the 5498-SA for both 2021 and 2022 should match what is on my W2, assuming I don't make any contributions outside of payroll deductions.
Thoughts?
Thank you!
