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.
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