I have 2022 excess HSA contributions that was withdrawn in 2023. As a result I received form 1099-SA with gross income reported for the distribution. In TT online, I have entered form 1099-SA details. But when I look at the printed Form 8889 Line 16 (Taxable HSA distributions), its shows a 0.
I thought any HSA distribution that is used other than medical expenses will be taxed. I was not asked any question by Turbo Tax, if this distribution was used for medical expenses.
