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?
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?
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.