I had an HSA excessive contribution that Turbo Tax caught on my 2016 tax return. So, this year, I got a 1099-SA with a code 1 for my normal distribution amount and I also got a 1099-SA with a code 2 for the excess contribution withdrawal. I entered both 1099-SA amounts in separately into Turbo Tax when it asks for 1099-SA amounts. So a few steps later it asks me if I had any HSA excess contributions in the previous years. Why did Turbo Tax not catch that I obviously did, being that I entered my 1099-SA amount in with that code 2 into Turbo Tax just a few steps earlier? By me putting in that 1099-SA code 2 amount on one of my HSA 1099 entries, you'd think when it comes to the end of that section it would have that code 2 amount in as "Excess Employer Contributions Withdrawn", but it does NOT. That amount shows as ZERO. ??!! By me inputting a 1099-SA with a code 2, that amount should automatically pull through on the other steps. I have no idea what the correct thing to do here is. Turbo Tax did add it to my 1040 line 21 on my 2016 taxes. And I did withdraw it by 4/15/17. So that is covered. I just don't know for sure if TT is doing it correctly this year because it sure doesn't look right to me.
