PaulaM
Employee Tax Expert

Deductions & credits

If you answered the HSA interview questions correctly and indicated that you will withdraw the funds before April 17, 2018, then there is nothing to update in your return.

The Form 8889 will be updated to reflect that you have withdrawn the funds and no penalty will be calculated. You can verify that there is no penalty by previewing line 59 on your 1040. Select Tax Tool, Tools, View Tax Summary, then select Preview my 1040 from the left black panel.

Note: Be certain to check with your HSA custodian to verify that the funds are scheduled to be withdrawn before you file.

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