HSA used to pay dentist, dental insurance refunded part of the money

[Billiardpro18]

I paid for an out of network dentist using my HSA.  My dental insurance ended up reimbursing me for part of the cost.  How do I put this money back into my HSA so that I am not taxed for taking money out of my HSA?

[PaulaM]

You will need to contact the custodian of the HSA to pay back the funds that were distributed and later reimbursed by your insurance company.

One option might be to return the entire amount of the original transaction to the HSA. The custodian could code both transactions as non-reporting. This way you would not be penalized for a non-qualified expense. You have until the due date of your return to return the funds and avoid the penalty.