Form 1099-SA has no way to indicate that the distribution was rolled over. The rollover is a separate transaction that occurs after the reported distribution. The rollover is indicated by how you report the distribution on your tax return.
In the HSA section:
- Answer Yes when asked if you used your HSA to pay for anything in 2020.
- Enter the details of the Form 1099-R.
- Indicate that you did not use it all for medical expenses.
- Indicate the amount used for medical expenses and the amount rolled over.
TurboTax will report the amount distributed on Form 8889 line 14a and will include the amount rolled over on line 14b, calculating the net distribution on line 14c.
