Closed my HSA A/C in 2024, thereby incurring a gross distribution of the funds in it. How do I report this, based on the info in the 1099-SA Form they sent me?

4evrbuying · ‎April 3, 2025

TurboTax prompts don't get me there

AmyC · ‎April 3, 2025

Follow these steps:

Open to federal income
Locate less common income
Select 1099-SA
Select HSA
Select you got a form and fill it in
The program will ask if your money went to qualified medical expenses.
- If all of it went to qualified medical expenses, none of it is taxable.
- Any portion not spent on medical expenses becomes taxable.

Some surprising things are medical expenses: crutches, protective equipment (think Covid), condoms and more. See About Publication 502, Medical and Dental Expenses - IRS.

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