1. Entering the 1099-SA showing distribution for qualified medical expenses (I assume they were), will not increase your tax tax at all.
2. Entering the employer contribution as Other Income will increase your tax a little, while entering the HSA contribution will reduce your tax the same amount.
This process will NOT result in you paying extra tax. The $214 difference is spurious.
I am sorry that I cannot explain this so that you understand.
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