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Level 2

Question

1099-sa

Forum|Forum|5 years ago
March 18, 2021
1 reply
4 views

My 1099-SA has a gross distribution of 3xxx.xx. It is normal distribution (code 1). I called the HSA. It says it is not taxable income, but my Turbo Tax software lists it as income. Why is it being listed as taxable?

Level 15

When you go through the posting of the 1099-SA there is a final check box that indicates that it was all used for Medical Purposes. If this box is not checked it will result in the HSA distribution being taxable.

This will be posted under:

Wages & Income
Less Common Income
Select 1099-SA
Select the type of plan
Continue through the interview
When you get to Did you spend your HSA money on medical expenses only? Say Yes.

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profnielsenAuthor

Level 2

I did check that box Yes, I used it all for medical expenses. But it still shows up as income on the summary income sheet.

Level 15

Is it possibly double posted. If the HSA is reported on your W-2 it does not have to go anywhere else in the program. It would show as an over contribution.

You can check it at:

Go to the Federal tab, and choose Deductions and Credits
Scroll to Medical, and under HAS, MSA Contributions, choose Revisit.
On the screen Tell us about the health-related accounts you had in 2020, uncheck the box for Health Savings Account (HSA)
Continue, and on the screen What type of High Deductible Health Plan did you have on December 1, 2020? check None.
Go back to Medical, and on Medical Expenses click Start.

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