BillM223
Expert Alumni

Deductions & credits

1. When TurboTax asks you if you paid for anything from your HSA in 2021, answer YES. (this is confusing but it is the only way you get to the screens into which you enter the 1099-SA).

 

2. Enter the 1099-SA as is. If you got two 1099-SAs (one for the excess from the previous year and the other for your regular medical expenses), enter both forms.

 

3. When TurboTax asks you if you "overfunded" your HSA in 2021, answer NO. What it is really asking you is "did you carry over any excess to 2022?" Since you withdrew the excess instead, the answer is NO.

 

4. From your description, you should not have had any penalties for either year. 

 

5. You are now done with the excess.

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