HSA Distribution

azpatusa · ‎February 09, 2026

Years ago, my employer contributed to my HSA account ~300 dollars. I never contributed. However in tax year 2025 I paid for some medical expenses from it. There were no HSA contributions in 2025 but I had distributions. How can I accurately enter this information into Turbotax?

THX!

MinhT1

n 2025, even if you did not contribute to your HSA, you can still use the funds in your HSA. Distributions from your HSA are reported on form 1099-SA. If the distributions are used for medical expenses, they are not taxable.

In TurboTax Online, after entering your form 1099-SA, in the follow-up interview, on the page titled Tell us about your HSA spending, check the radio button I used all the money for medical expense only then Click Continue. The distributions will then not be taxed.

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Opus 17

You will get a form 1099-SA from the HSA bank if you withdrew money. If you did not get a form in the mail, check your online account access or call them. When you enter the 1099-SA, be sure to complete the entire interview section, since the withdrawal will default to being taxable unless you answer the questions to say that you used all the money for qualified medical expenses.

You can use your HSA for medical expenses even if you did not contribute this year and even if you are not eligible to contribute. The rules for withdrawals are separate from the rules for contributions.