Your 1099-SA distribution should not add to your income. Go through the TurboTax 1099-SA interview again.
- Type 1099-sa in the search box and click search.
- Click on Jump to 1099-sa.
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Edit your 1099-sa
- On the Tell us about the health-related accounts you had in 2016, check Health Savings Account.
- Continue with the onscreen interview until you get to the Let's get the numbers from your 1099-SA.
- On the Did you spend your HSA money on medical expenses only? screen, click Yes.
- See the screenshots below.
If you aren't enrolled in a High Deductible Plan in 2016, in addition to the above, make sure you:
- Answer No, on the Was XXX enrolled in a HDHP in 2016? screen.
- On the Let's maximize your contribution limit screen, make sure you enter None. See the screenshot below.
- On the Did you overfund your HSA in 2015? screen, click No.
- On the Additional Tax for Failure to Maintain HDHP coverage screen, click No.
- Continue with the onscreen interview.
If you are enrolled in a High Deductible Plan in 2016, make sure you:
- On the Let's enter XXX HSA contributions, do not enter anything if your W-2 Box 12 has a Code W. It is already entered.
- Answer Yes, on the Was XXX enrolled in a HDHP in 2016? screen. Also, choose the type of plan you had.
- On the Did you overfund your HSA in 2015? screen, click No.
- On the Additional Tax for Failure to Maintain HDHP coverage screen, click No.
- Continue with the onscreen interview.
