Thanks for your reply. Yes I had qualified HSA funding distributions appearing on my 1099-SA tax form. No, I did not transfer from an IRA to HSA. I only have one W-2.
I decided to start a new tax return (start fresh). The only difference is that a new screen titled "Report Archer MSA Contributions", that I did not get the first time, asking me to "Enter all contributions made for 2023 to regular MSAs or Archer MSAs owned by you or your spouse. Include any employer contributions". This is where I just entered 0 (zero). See this time HSA Summary (different than what I reported earlier).
Deduction $0
Total distributions $2,417
Taxable distributions $0
Taxable earning on excess contributions $0
Tax-free employer contributions $8,750
Excess employer contributions withdrawn $0
Line 4 now has a zero amount in Form 8889. Here is my question, why the MSA screen did not appear the first time? Can this be a bug in the software?
