Skip to main content
June 1, 2019
Question

If my HSA distribution is all a qualified medical expense, why is the distribution showing up as taxable income?

  • June 1, 2019
  • 11 replies
  • 0 views

Is there a bug in the software?

11 replies

ghost
Employee
June 1, 2019
Where on your tax forms does the amount appear?
Employee
June 1, 2019
Be sure you told the program that all distributions were spent on qualified medical expenses.
ghost
Employee
June 1, 2019
Unless you see the amount on Form 1040, Schedule 1, line 21, it's not taxed. Also, on Form 8889, line 16.
June 1, 2019
The taxable income is showing up on Line 21 of Schedule 1 and Line 6 of Form 1040.  I checked "yes" that the entire distribution was a qualified medical expense but Line 15 of Form 8889 shows no qualified medical expenses.
June 1, 2019
I deleted the entire 1099-SA and then re-entered it, checking "yes" that it is all a qualified medical expense.  It still shows as taxable income.  I'm convinced that there is a bug is the software.
ghost
Employee
June 1, 2019
Try deleting your entire 1099-SA entry and reenter.
ghost
Employee
June 1, 2019
Online Turbotax software, correct?
June 1, 2019
Yes, online software.  Purchased it in mid-December and have installed all updates.
ghost
Employee
June 1, 2019
So the software was downloaded to your computer? Not an online version via a browser. Just need to clarify. Asking around.
ghost
Employee
June 1, 2019
@TurboTaxBillMc  Bill, can you offer assistance to @papabear