OK, thanks
1099SA #1--This one was handled correctly. All distributions used for medical expenses.
Box 1--$1121.57
Box 2--0.00
Box 3-- 1
1099SA #2--This is the problem child
Box 1--$4372.93
Box 2-- $60.95
Box 3-- 2
My two distributions related to 1099SA #2
- $3353 March 2025 + $51 earnings (estimated--see below)
- $1020 December 2025 + $10 earnings (estimated--see below)
Here's something that may be significant. When I get to the interview question "Enter last year's excess contribution" it says I can find that on line 48 of my 2024 Form 5329. But my 2024 return does not have a Form 5329! It has Schedule 1 showing $3292 on line 8f and $1660 (gambling winnings) on line 8b and the total transferred correctly to line 8 on my Form 1040. To the interview question above, I tried inputting zero, then my estimated excess of $3353 and ran it again. See the results:
Input $0 Input $3353
Deduction $0 $3353
Total Distribution $5495 $5495
Taxable distributions $0 $0
Taxable earnings on excess contributions $61 $61
Tax-Free employer contributions $1020 $1020
Excess employer contributions withdrawn $0 $0
Either scenario shows no taxable distributions. I should be paying taxes on $1081 (excess + earnings) on my 2025 return, correct?
