HSA distribution not accurate, due to reversing an overfunded deposit

[shellbhawaii]

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.

[ThomasM125]

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.

[shellbhawaii]

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

[ThomasM125]

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.