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Level 1
posted Feb 28, 2023 6:18:24 PM

Turbo Tax is requiring I enter a distribution code from my 1099-SA Form, however on my 1099-SA form there no distribution code listed. How should I proceed?

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4 Replies
Expert Alumni
Feb 28, 2023 6:32:38 PM

Was you distribution from your HSA to pay for medical expenses?  If so, enter Code 1 - Normal Distribution.  According to the IRS: "Use this code for normal distributions to the account holder and any direct payments to a medical service provider. Use this code if no other code applies."  Your other options are:

 

  • 2—Excess contributions 
  • 3—Disability
  • 4—Death distribution other than code 6
  • 5—Prohibited transaction
  • 6—Death distribution after year of death to a nonspouse
    beneficiary

Level 1
Mar 1, 2023 12:33:43 PM

Thanks for your reply! Any distributions are to pay for medical expenses, but I did not spend any HSA funds last year . I have employer contribution amounts listed on a 5498SA, but regarding distribution I have no code listed. Should I still use "normal distribution" or no since nothing is stated on my 1099SA?

Expert Alumni
Mar 1, 2023 12:50:01 PM

If there is no distribution in box 1 and no earnings on excess contributions in box 2, then you do not need to enter the form. 

 

If there is a distribution in box 1 then the best option is code 1 for normal distribution unless there are earnings listed in box 2.  

 

In that case you should contact the administrator to get a corrected 1099-SA with a code 2 to get that excess off the books.      

Level 15
Mar 1, 2023 3:46:26 PM

It seems that because you took no distributions from your HSA in 2022 you did not receive a 2022 Form 1099-SA from your HSA.  Delete the 1099-SA form that was probably transferred in from your 2021 tax file..