After withdrawing the excess contribution ($3,750) from my HSA, I assume it can be used for non-medical expense (i.e. funding my wife's HSA) because it is already taxed (1040, Other Income). Is it correct?
1) Will it ($3,750) be added to "Gross Distribution" in my next year's 1099-SA?
2) If so, will I be taxed again if I answer "no" to the question "did you spent this on Medical expenses only"?
