Deductions & credits
Since you are unable to replace your funds in the Health Savings Account (HSA) your refund/distribution that was not used for medical purposes is reported as other income and penalized because you are unable to repay it to the HSA. Use the link below for additional details.
- Taxable HSA Distribution
- IRS Procedures for HSAs (page 18, Number 37) You do have until April 18th to see if you are allowed to repay the funds even if, at the moment, the plan administrator is not allowing it.
- Check your state after you complete your federal return.
When you have your TurboTax return open use the Search box > type 1099sa > click the Jump to... link> begin to follow the screen prompts an and answer the questions.
