@tysvol wrote:
I requested a distribution today from my HSA custodian. Will they know it doesn't qualify as a medical reimbursement but a refund of overpayment? What form should I expect to receive from them early 2023 for the 2022 tax year?
The HSA custodian doesn't know or care. In January 2023, you will get a 1099-SA that shows your combined total of all distributions. When you enter this in Turbotax, the program will ask did you use it all for medical expenses, answer no. The program will then ask what your qualifying medical expenses were. When the program detects the excess withdrawal, it will place that on form 5329, where it will be balanced out against the prior excess contribution you have been carrying.
