You need to state that the distributions were being spent on unreimbursed medical expenses. Without stating that the distribution is covering the expenses, the distribution is subject to taxation and a 20% penalty (if you are not 65 or older).
Review these entries in the HSA section:
- In the Search box, type the word HSA
- Click on the link Jump to HSA
- Review your entries and make sure you state what you spent on unreimbursed medical expenses.
**Mark the post that answers your question by clicking on "Mark as Best Answer"