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HSA showing as taxable

Before 2023, I was employed and had a high-deductible health plan. I had accumulated a bunch of money in my HSA. I withdrew some of it in 2025, but I can't seem to get TT to recognize it as not taxable. I went through the interview process multiple times, but wasn't asked if these were qualified medical expenses. Form 8889, line 14 G shows no "Qualified medical expenses". What am I missing?

Thanks,

Pete

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2 Replies

HSA showing as taxable

There are two connected HSA interviews, one on the income page when you enter the 1099-SA, and one on the deductions page for medical insurance.  You may need to run both interviews.  If you enter some medical expenses, you might not get the question in the 1099-SA interview because Turbotax subtracts reported medical expenses from your 1099.  You might need to list all your medical expenses as deductions, not just any uncovered expenses.

 

Otherwise, try and delete the 1099-SA and form 8889 then start over. 

HSA showing as taxable

Problem solved. Deleting the two forms did the trick, and the problem was my own fault. In the original interview when asked whether the amount was either all or part of the total (sic), I foolishly interpreted that they were asking about all or part of my total HSA, not of the distribution. So I had indicated "part" rather than "all". I shouldn't drink bourbon when doing my taxes.

 

Thanks !

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