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You now owe tax because you got a tax break by originally claiming the HSA contributions were yours. Since they were from the employer, they are already tax-free. So you are repaying the amount of the HSA deduction you should not have gotten in your original return.
You now owe tax because you got a tax break by originally claiming the HSA contributions were yours. Since they were from the employer, they are already tax-free. So you are repaying the amount of the HSA deduction you should not have gotten in your original return.
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