Why does my HSA distribution show as income when the distribution was for medical expenses

[23george]

My HSA distribution still shows as income on summary sheet even though I used the entire amount on medical expenses

[AnnetteB · Accepted solution]

Some of the summary screens within TurboTax will include distributions from accounts as income simply because you received the distribution.  It was “income” to you.  That does not necessarily mean that it is included as taxable income on your return. 

Take a look at your Form 1040 to be sure that the distribution is not being included as taxable income on line 21 labeled as Form 8889 Health Savings Account. 

Use these steps to Preview your Form 1040 while working in your tax return if you are using TurboTax Online:

• In the navigation area on the left side of your screen, click Tax Tools to expand your choices

• Click Tools, which will open the Tool Center

• Click View Tax Summary under “Other Helpful Links…”

• Click Preview My 1040 to see your actual tax form

Use the following instructions to go to Forms Mode if you are using the CD/downloaded version of TurboTax.

https://ttlc.intuit.com/replies/3339204

Note:  For 2019, any taxable amount will be reported on Form 1040 Schedule 1 Line 8 and then included on Form 1040 Line 7a.

[edited 3/10/2020 | 9:33 am PST]