TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 2

Question

HSA Distribution used for Surgery

Forum|Forum|1 year ago
March 2, 2025
1 reply
0 views

We have been contributing to HSA over the years this year we used the money for surgery. This year we contributed $2000 for the whole year while for surgery and other medical expense we used $2998.97. The total balance in the account has been more than $6000 as years of contribution. Do I need to pay tax for this?

Level 15

No.

If you used your HSA distributions for medical expenses, the distribution is not taxable and there is no penalty.

Please read this IRS document for more information.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

mvipatAuthor

Level 2

That was my understanding too, but as soon as I enter 1099-SA I received from employed and responding to this question

Did you spend your HSA money on medical expenses only? - Yes

The tax due increases. Is this a bug in turbotax?

mvipatAuthor

Level 2

I deleted and entered all the amounts and the Federal tax due remained same. My understanding was wrong.