Circumstances are husband is retired with HSA funded from previous job; he's on Medicare, I am not. We are not on HDHP, are not contributing and have only used the money for medical expenses. Other years with same circumstances the distribution has not been taxable. Thank you!
You'll need to sign in or create an account to connect with an expert.
1. When you entered the 1099-SA form in the HSA interview, you did not indicate that all of the HSA distributions were for qualified medical expenses.
2. You did not finish the HSA interview. Go to Personal->Deductions & Credits->Medical and click on "1099-SA HSA MSA".
Go all the way through the interview, until you are returned to the screen entitled "Your 2016 Deductions & Credits".
The issue is that the IRS considers contributions and distributions for an HSA to be taxable until there is a completed form 8889. And TurboTax cannot complete the 8889 until the taxpayer completes the HSA interview.
Many issues with HSAs are solved by completing the interview.
1. When you entered the 1099-SA form in the HSA interview, you did not indicate that all of the HSA distributions were for qualified medical expenses.
2. You did not finish the HSA interview. Go to Personal->Deductions & Credits->Medical and click on "1099-SA HSA MSA".
Go all the way through the interview, until you are returned to the screen entitled "Your 2016 Deductions & Credits".
The issue is that the IRS considers contributions and distributions for an HSA to be taxable until there is a completed form 8889. And TurboTax cannot complete the 8889 until the taxpayer completes the HSA interview.
Many issues with HSAs are solved by completing the interview.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
ualdriver
Level 3
srfrgyrl
New Member
ashleyhudd229
New Member
AggieJen
Level 3
mak96_sam
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.