1099sa Med Savings accnt ??. I entered the values from box 1 and 3 (normal distr). The TTax added 50% of box 1 my fed tax owed. HSA should be tax free. please advise.

[kambiz-kohanim]

TTax premier is taxing me on HSA expenditure reported on 1099-SA form. for example I reported $2,000 on box 1 and selected normal distribution in box 3. I don't expect to pay $1,000 tax to Feds on this amount. What's up?

Regards

[KittyM]

Please revisit the 1099-SA, HSA, MSA topic on your Federal return under Wages & income.

• Continue the interview to reach the page Here's what we have so far and Edit the HSA-1099 that you previously entered.
• Continue until you reach the page Did you spend your HSA money on medical expenses only?
• Choose the radio button for whichever answer is correct for you:  Yes, I only used it for medical expenses or No, I didn't. 
• If you choose No, I didn't, a sub-screen will open up with a box for you to enter the amount you spent on medical expenses.