HSA Excses Contribution Returned, Tax Treatment?

[Tina20222]

Thank you. I figured out the 1000 refund increase is from something else. It seems a coincidence that it showed up after I answered HSA questions.

Now the Form 8889 Line 18 Smart Worksheet shows A1: 2021 HSA contribution 7,529,  A2: Excess contribution in 2021 is blank, A3: Net HSA contribution in 2021 is 7,529. Should I change them to A1 8,000, A2 800, and A3 7,200? Or should I just keep it as is?

I have entered the 1099-R. Now the Line 14 Smart Worksheet shows A: Gross distribution 800, C: Return of excess contributions 800.

Thanks,

[BillM223]

"Form 8889 " Are you still talking about the 2021 8889, or the current year 2022?

And what 1099-R are you referring to? This reports a distribution from an IRA or retirement plan.

[Tina20222]

I am talking about the 2022 8889. The 7,529 on Line 18 Smart Worksheet seems was carried from 2021 return. 

Sorry I put a wrong form name just now. It is 2022 1099-SA, not 1099-R. It is for the 2021 excess contribution I withdrew in March 2022. 

Thanks,

[BillM223]

"Or should I just keep it as is?" Keep them as is. Document what you did and why and put that in your tax archives.

The fact is that you are in one of those places that you can't fix by yourself. So just save what you did in case any one ever asks.

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