Good morning,
The 1099-SA distributed amount matches the amt contributed to the HSA by my employer. I had medical expenses in excess of the deposited amt last year; so I withdrew the full contributed amount to cover these medical expenses. The 1099-SA was issued by the HSA administrator; my employer did not provide any 1099 showing their contribution. All I have that shows this is form 5498 which does not get entered in TT. When I initially posted my question on TT, I had simploy entered the 1099-SA info, answering YES to the question as to whether all the distributed amount was used for medical expenses only. The amount contributed by my employer was not entered anywhere because I couldn't find a place to enter it. This resulted in $220 in add'l federal tax due. I have followed your instructions for the two solutions you have suggested thus far:
1) Entered the employer contributed amount under Amount I Contributed on the HSA questionaire. This results in 0 add'l federal tax due which is what would be expected since there should be no tax on the HSA $.
2) Removed that I had contributed to the HSA and instead, entered the Employer Contributed Amount under Other Taxable Income. This results in over $500 add'l federal tax due. This is not a good solution.
Yesterday, I removed the entry made in #2 above and went directly to form 8889-S. I went to Line 9 Employer Contribution Smart Worksheet and entered on line E (Other employer contributions for 2023 not reported above) the amt they contributed (which equals the amt distributed since I used it all). This results in that same amt appearing on Line 9 of the form. Section 14's Smart Worksheet section shows the correct amount on lines A and D; G is 0. Below the Smart Worksheet section, lines 14a & 14c show the correct distributed amt; line 15 (Qualified Medical Expenses paid using HSA distributions) shows the same amount. All of this appears to me to be correct. The result of all of these entries is the same as when I began with federal tax due increasing by $220.
I hope this makes everything clear. I've tried all along to be as precise in my descriptions of the scenario as possible. I appreciate you trying to help me.
