I received a revised/corrected 1099-SA form from my HSA account trustee, and it wasn't marked as corrected at the top of the form, but it was definitely a correction, since the original 1099-SA form they sent me showed $0 in distributions, and the revised/corrected one shows the accurate amount of $9,900+. I didn't notice the error when I was doing my taxes, so filed based on the $0 distribution 1099-SA I had originally received, but it shouldn't matter because it was all used for eligible medical expenses. Two questions: If my form wasn't marked as corrected, should I still file an amended return? The question in TurboTax specifically asks whether my 1099 form is marked as corrected; the accurate answer would be no, but it's obviously a corrected version of the original one. Second: If I enter the corrected amount for distributions to possibly amend my return, it bumps up my blended tax rate and tax liability to where I would now owe $1,700 or so. I don't understand that. I've read other threads about the problem with HSA distributions counting as income unless you offset that with the same amount under medical deductions, but I take the standard deduction so I have nowhere to offset the distribution amount. Is there another way I can offset the 1099-SA amount so it doesn't bump up my tax liability? It truly should be non-taxable income since it was all spent on medical expenses.
