BillM223
Expert Alumni

Deductions & credits

Think about the sequence of events...

  • You discover that you made excess HSA contributions while doing your 2022 tax return in early 2023.
  • TurboTax tells you how much to withdraw (because you should not withdraw it before you know how much to withdraw)
  • The IRS allows you to "cure" the excess by withdrawing it by the due date of the 2022 return as extended (generally, April 15, but April 18, 2023 - this year).
  • So your excess is busy earning money in the latter part of 2022 (you usually don't have an excess until late in the year), and in the early part of 2023 
  • You need to report the earnings as income, but you don't know what the real amount is until 2023.
  • Hence, no matter when you get the 1099-SA, you need to report the earnings for tax year 2023 (a rare case of reporting 2022 income in tax year 2023 - because 2022 income and 2023 income are lumped together)

So, depending on the HSA custodian and when you asked for the withdrawal of the excess, you might get the 1099-SA in the first half of 2023, late in 2023, or even in early 2024.

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