Why are my 1099sa gross distributions counted as income. I payed at the doctor's office with my HSA Debit Card. It was reported on1099sa as gross distributions code1.

Forum|Forum|7 years ago
June 3, 2019
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When I entered the Gross distributions form form 1099sa in TT, it shows it as income on my return. The gross distribution code is 1. I used these money to pay ultrasound fees at the doctor's office. I believe that these money should not be taxable. I participate in HDHP and used the money to pay medical expenses.

TurboTax Deluxe Mac

Anonymous

You're correct, you should not be taxed on your Health Savings Account (H.S.A.) distributions. Entering your HSA is a two-step process in TurboTax, so you just have to keep going. Since you are not done entering all your information, this change in the refund is correct. Remember that refund number is just a work in progress until you're actually done entering in all your information. Make sure you go through all the H.S.A. screens including where you enter that you were covered by a High Deductible Health Plan (HDHP).

H.S.A. information is entered in two sections of TurboTax.

First in Wages & Income as a W-2, 12 code W.
Second, in the Deduction & Credits section under H.S.A. Contributions. So long as you meet all the requirements such as only using the HSA distributions for medical purposes and having a high-deductible health plan (HDHP) then your contributions on the W-2, box 12, Code W will not be taxed.

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