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abutterworth
Returning Member

How do I enter HSA non medical expenses paid after I turn 65 so I can avoid the 20% penalty?

Turbo tax does seem to offer the option to list the dates when you paid non-medical expenses
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1 Reply
BillM223
Expert Alumni

How do I enter HSA non medical expenses paid after I turn 65 so I can avoid the 20% penalty?

In the HSA interview, you entered the 1099-SA for the distribution, right? And you are were 65 for the entire year, right? And you indicated that X amount of the distribution was not for medical purposes, right?

 

On line 17a on the 8889, is the box checked for "Exceptions to the Additional 20% Tax"? And was the amount on 17b on the 8889 zero? (i.e., there was no 20% penalty because all your non-medical distributions were after age 65?)

 

P.S., did you turn 65 in 2023? If so, TurboTax should have asked you an odd question in the 1099-SA interview: "was this distribution before or after you turned 65?" But it will do this ONLY if you turned 65 during the tax year, otherwise, you won't see it.

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