My daughter has an HSA account covering the family and did not take a distribution from in 2023. My SIL HAD an HSA from which he took an eligible distribution. H did not have an active one in 2023 but used his prior one for medical expenses. Turbo Tax is showing my daughter's contribution (W-2 box 12, code W) as taxable. I could say they are withdrawing the money before April to force it but that doesn't seem correct.
