I'm confused about my HSA 1099-SA... according to my W2, my employer contributed 1000.24 to my HSA. As of 12/30, the balance on my HSA was $0. but im told to withdraw??

[mariahs1452]

My employer told me if I didn't show a $0 balance, I'd lose whatever funds I didn't use. So I made sure to use the last of the balance. Not sure how to proceed with entering this info bc Turbo is telling me there is a $1000.24 excess contribution and to withdraw it but it's already withdrawn???

[ghost · Accepted solution]

First, your employer is confusing HSA with FSA. HSA may carry a balance into the next year without losing it.

The 1099-SA form shows the total amount withdrawn (distributed from your account) for the year. This form has nothing to do with the contributions made to the account. This is a tax free distribution provided you answer that the full amount was used to pay qualified medical expenses. 

Since your contributions were through your employer, the contributed amount should be on your W2 form listed in box 12 with code W.  This amount on your W2 is automatically recorded as your employer contribution. There is no need to enter any other contributions unless you made additional contribution outside of employment. As long as you had the proper HDHP medical insurance, the contributions are exempt from income and FICA taxes.