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February 27, 2025
Question

Our HSA Distributions 1099-SA are showing up as taxable income and additionally being taxed an extra 20%. This is incorrect. What am I entering incorrectly?

  • February 27, 2025
  • 1 reply
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    1 reply

    DawnC
    February 27, 2025

    When you enter the 1099-SA, you have to check the box that asks if the distribution was used on qualified medical expenses.   And check your tax return.   Just because the income is on your income summary  doesn't mean it is reported as taxable income on your tax return.   Look for the screen below.  

     

    Preview Form 1040 in TurboTax Online.

     

    Use Forms Mode if you are using the desktop software.

     

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