The Form 1099-SA must be entered and Form 8889 must be included with your tax return. In the follow-up to entering the Form 1099-R, you must indicate that you did not use all of the distribution for medical expenses, then indicate the amount used for medical expenses and the amount rolled over to another HSA. Neither of these amounts will be subject to income tax or penalty. The amount rolled over must appear on Form 8889 line 14b.
