I put the wrong amount for non medical distributions on my 8889 HSA form. Do i pay the correct 20% penalty or the difference between the amount already penalized?

[t4801tv]

My return has not been accepted yet

[AnnetteB · Accepted solution]

Based on your statement that your return has not been accepted yet, I am assuming that you have already filed your taxes and then realized the mistake. 

If that is the case, wait to see if your return is accepted as filed.  If for some reason it is not, then you can make the correction before re-submitting it. 

If it is accepted as filed, then you will need to file an amended return to correct the mistake.  Simply paying the corrected amount would cause confusion since it would not match the tax return that was filed. 

Instructions for amending a 2017 return will be available in early February.  If you keep checking the information below, the link to the instructions will become active when they are available. 

https://ttlc.intuit.com/replies/3288565

https://ttlc.intuit.com/replies/3318732

[t4801tv]

Ok, and thank you! Once i ammend will it tell me the penalty amount at that moment? Also does this mean I’ll be subjected to additional fines and penalties? Im beyond panicking because I didn’t realize initially that OTC meds are not approved without a prescription.

[AnnetteB]

When you create the amended return, the corrected penalty for the non-medical spending will be calculated.  As long as you file the amended return by the due date of your 2017 taxes there would be no additional penalties because you are simply correcting an error but still filing on time.

[t4801tv]

Thank you so so much AnnetteB! I really appreciate you responding to my question.