Taxable Health Savings Account distribution

Forum|Forum|4 years ago
February 23, 2022
6 replies
65 views

I'm working on my 2021 returns and I'm running into a situation I've never encountered before in my prior returns. After going through all of the questions, TurboTax generated a return where it filled in a number in Schedule 1 - 8e (Taxable Health Savings Account distribution) and I have no idea how TurboTax came up with this number and why it's being reported in that field. All of my HSA distributions in 2021 were for medical expenses and I had answered yes to that question.

Can someone please help me with this? Thanks in advance.

JillS56

Level 10

If you do not know where the number came from or why it is not reporting something correctly, the first thing to do is to go back to the screen where you entered the information for the HSA and confirm all your answers are correct. As you go through the answers be on the lookout for the screen that is asking you for your HSA distributions. Verify the amount is correct and if not correct the amount. Then double-check to make sure the box is checked that it was used for qualified medical expenses.

If you continue to have problems and would like us to take a look at your return and see if we can figure out where your problem is, we can do that. We would need to send us a token. The get the token to go to Tax Tools, Tools, and Share My File with an Agent. This will generate a six-digit number. Send us the six-digit number by responding and we will take a look and see if we can find the problem.

Mike9241

Level 15

you should have gotten form 1099-SA with code 1 - normal distribution which indicates the distribution was for qualified medical expenses. that form needs to be entered

Mike9241

dmertz

Level 15

Code 1 on a Form 1099-SA only indicates that there was a regular distribution. It does not mean that it was necessarily used for qualified medical expenses. It up to the filer to indicate the amount amount was used for qualified medical expenses (which TurboTax asks for upon entering a code-1 Form 1099-SA and was apparently done).

An amount on line 8e can also be from the taxable amount shown on a code-2 Form 1099-SA reporting a return of excess contribution.

needinghelp1Author

Level 2

@dmertz Thanks. I did get a 1099-SA with a 2—Excess contributions in Box 3 but the Earnings on excess cont. was only $0.22 whereas the amount that Turbotax entered into Schedule 1 - 8e is substantially higher. Any thoughts on why this might be?