1099-SA HSA I made post-tax contributions to my HSA, and plan to pay myself back.

[skevich21]

I made a $200 contribution from my own post-tax checking account to my HSA in 2022 because the financial institution wasn't showing pending payments, and the HSA account was about to go below zero.

I plan to pay myself back this year, 2023, from that HSA account to my same post-tax checking account.

On Turbo Tax, it is asking if I made any contributions.  Should I leave that blank, and consider the payment back to my same post-tax checking account as 'even'?

Thank you!

[DaveF1006]

I would report the contribution for this year as a contribution because if it is withdrawn in 2023, you will probably be issued a 1099 SA for 2023 that reports the distribution. You will be taxed since it was not used for medical expenses.

You may as well receive a deduction for the contribution this year because you will be taxed on the distribution on your 2023 return. 

[Mike9241]

i would advise leaving the money in until it can be used for qualified medical expenses. if you take it out for non-medical reasons there is a 20% penalty + the income taxes. 

[skevich21]

Hi DaveF1006!   If I report it as a contribution for 2022, then it sounds like I am receiving some sort of tax benefit (depending on how my taxes are filed) for this year. 

Do you think I should probably not pay myself back at all?  To avoid the tax on my distribution later?
Thank you!

[skevich21]

Hi, Mike9241, It sounds like paying myself back is considered a non-medical expense.  I didn't think of it that way.  It sounds disadvantageous to pay myself back. Thank you,