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Level 2
February 15, 2023
Question

1099-SA Alternative

  • February 15, 2023
  • 4 replies
  • 24 views

I do not have a 1099-SA form from my HSA bank because I made my withdrawals for 2022 in January 2023. Is it possible (via worksheet or formula of some sort) for me to self-tabulate the information of a 1099-SA form? 

4 replies

Level 15
February 15, 2023

No.

 

You should not enter information from a 1009-SA that you don't have on your 2022 tax return.

 

If you withdrew from your HSA only in 2023, you will receive a 2023 1099-SA and enter it on your 2023 tax return (next year).

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JCL13Author
Level 2
February 15, 2023

Thank you. I understood my 2022 contributions could be withdrawn up until the tax filing date and still count for that years withdrawals. Is that not correct? Are there penalties for not using the fund up for that specific year? 

HopeS
Alumni - Intuit
February 15, 2023

Yes, the excess contribution will be reported as "other income" on your tax return.  HSA distributions that are included in income are subject to an additional 20% tax unless there is an exception. (See IRS Publication below)

 

However, you can withdraw some or all of your excess contributions for 2022 and they will be treated as if they had not been contributed if:

 

  1. You make the withdrawal by the due date, including extensions, of your 2022 tax return 
  2. You do not claim a deduction for the amount of the withdrawn contributions; and
  3. You also withdraw any income earned on the withdrawn contributions and include the earnings in “Other income” on your tax return for the year you withdraw the contributions and earnings.

 

If you timely filed your return without withdrawing the excess contributions, you can still make the withdrawal no later than 6 months after the due date of your tax return, excluding extensions. If you do, file an amended return with “Filed pursuant to section 301.9100-2” written at the top. Include an explanation of the withdrawal. Make all necessary changes on the amended return (for example, if you reported the contributions as excess contributions on your original return, include an amended Form 5329 reflecting that the withdrawn contributions are no longer treated as having been contributed).

 

See IRS guidance below on Health Savings accounts:

 

Instructions for Form 8889

 

@JCL13 

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