Why isn't Turbotax filling in Form 8889 Lines 14 A/B to show the excess HSA contributions which I withdrew?

[newusernameagain]

I  withdrew  excess contributions (took a distribution of $708) from my HSA in 2021 and received a 1099-SA showing the Distribution in BOX 1  of $708. 

Turbotax only gives me the option to say that I will withdraw the excess by April 18,2022 so I check marked the question  "OK, we'll withdraw the full $708 excess contribution by April 18, 2022".

Why doesn't Turbotax  fill in the correct entry on Form 8889 lines 14A,B which I think should show my (excess) distribution amount of $708?  

Form 8889

Line 14 A Total distributions you received in 2021 from all HSAs (see instructions)

Line 14 B Distributions included on line 14a that you rolled over to another HSA. Also include any excess contributions (and the earnings on those excess contributions) included on line 14a that were withdrawn by the due date of your return.

I think the probem is I should have answered "YES" to the below question so that Turbotax prompts me to enter the 1099-SA and then I can say it was CODE 2 Excess Distribution. The question was not worded correctly in Turbotax - it should have asked if I received any Distributions.

Did you use your Health Savings Account (HSA) to pay for anything in 2021?

[BillM223 · Accepted solution]

So you are saying that you received a 1099-SA but did not enter it in the TurboTax interview. Then it sounds like you understand what happened. Yes, the question "Did you use your Health Savings Account (HSA) to pay for anything in 2021?" might be better phrased as "Did you receive any 1099-SAs for funds distributed from your HSA in 2021?"

Once you go back into the HSA interview and say that you paid for something in 2021, you can enter your 1099-SA, and then the 8889 should be completed correctly.

[newusernameagain]

Yes that is exactly what I am saying, that I received a 1099-SA but did not enter it in the TurboTax interview.

I agree, the question should have been worded  "Did you receive any 1099-SAs for funds distributed from your HSA in 2021?"

I did that and the 8889 was completed correctly.

Thank you for confirming but I suggest the wording be corrected in Turbotax.