☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 3
posted Apr 3, 2020 3:35:35 PM

HSA distribution not accurate, due to reversing an overfunded deposit

Toward the end of 2018, I added money to my husband's HSA. We later learned we overfunded, but not until 2019. So I did what I thought was right and transferred money out of the fund. But now, my distribution for 2019 includes the amount I reversed out for overfunding. So it's impacting my medical deduction allowed. How do I fix that? If I correct the distribution amount on my return, it won't match the amount on the 1099-SA.

0 3 577
3 Replies
Expert Alumni
Apr 5, 2020 1:36:02 PM

If you enter code 2 "Excess contributions" in the box 3 entry for your 1099-SA form, the amount will be designated as "excess contributions" and as such should not affect your medical expense deduction on your schedule A.

 

Level 3
Apr 5, 2020 3:29:07 PM

Thanks for the answer, Thomas, but only PART of it was excess. Part was actual distribution. So how to I show what was what?

Expert Alumni
Apr 5, 2020 7:59:13 PM

You need to make two form 1099-SA entries, the total of which will equal the amount reported on your 1099-SA form. That way you can show the excess contribution on one form entry and the rest on the other entry.