what should i do if my husband had excess HSA contributions for 2024, and he withdrew the excess in early 2025, but we dont have an amended 1099-SA yet

[MinhT1]

You will not receive an amended 1099-SA.

Your withdrawal of excess contribution will be reported on your 2025 1099-SA with code 2 in box 3.

As you have withdrawn the excess before April 15, 2025, there is no penalty of 6%.

In TurboTax, when TurboTax tells you that there is an excess contribution, on the next screen, say that the excess has been withdrawn. There is no excise tax and form 5329 will not be populated.

[Edited 03/31/2025 | 1:17 PM PST]

@krista316 

[NCperson]

@MinhT1 don't you have to report that you withdrew the excess on the 2024 tax return, otherwise, you'll get hit with the 6% penalty????

what is not clear is how @krista316 withdrew the excess.  If as a request to the Administrator, then report it in 2024.  If withdrawing it as if there were medical expenses, then it's part of 2025 tax return. 

[krista316]

I withdrew the excess via a request to the Administrator. The problem is that my tax form does not show the withdrawal, so how would i report it? 

[krista316]

This is what Chat GPT told me to do, which is consistent with other things Ive read,  but is opposite of what you're suggesting. Why would I not report it this year?

1. Report the Excess Contribution on Your 2024 Tax Return – Even though he withdrew the excess in early 2025, you must report the excess contribution on your 2024 tax return using Form 8889, Health Savings Accounts (HSAs).
• Enter the excess contribution on Line 2 of Form 8889.
• If the withdrawal included earnings, the earnings must be reported as income for the tax year in which the withdrawal occurred (2025)..
2. Handling the 1099-SA Issue –
• The Form 1099-SA for 2024 (issued in early 2025) likely won’t reflect the withdrawal because it was done in 2025.
• Your HSA provider should issue a corrected 1099-SA later in 2025 to reflect the withdrawal properly.
• If you do not receive a corrected 1099-SA in time to file, you can still report the withdrawal on your 2024 tax return and keep documentation of the withdrawal in case of an IRS inquiry.
3. Report the Withdrawal on Your 2025 Tax Return –
• The HSA provider will issue a 1099-SA in early 2026 showing the withdrawal as a distribution for 2025.
• You may need to explain this in your 2025 tax return to show that the withdrawal was a correction of a prior-year excess contribution.

[NCperson]

@krista316 even though the tax form does not show the withdrawal, report it anyway on your 2024 tax return.  Not having it on a form doesn't preclude you from reporting it.