@DanaB27
Is there an official IRS post or something somewhere that state whether it should be 1 or 2?
We contacted our HSA admin, and they asked back if we are sure if this is supposed to be code 1.
I did test on TTax that if I put code 2, it didn't increase the tax I owe.
If I put code 1, it went up - which is correct.
Assuming it is code 1, does this mean TTax will remove this excess contribution and won't flag this when I do my 2023 tax return?
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From IRS https://www.irs.gov/pub/irs-pdf/i1099sa.pdf.
1—Normal distributions
Use this code for normal distributions to the account
holder and any direct payments to a medical service
provider. Use this code if no other code applies. Also, see
Distribution after year of death, earlier.
2—Excess contributions Use this code for distributions of excess HSA or Archer
MSA contributions to the account holder
