Question

Made $2400 more than HSA limit and withdrew the excess and filed the 2021 tax return. when

Forum|Forum|4 years ago
April 13, 2022
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me and spouse had our our HSA/HDHP coverage in 2021. made an excess of $2400 in HSA. Withdrew the excess($1200 each) from our HSA accounts, to avoid 6% penalty and already filed our taxes. now wondering where and when to report and what to report the excess as extra income? please help

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R

RaifH

If you reported the excess employer contribution and subsequent withdrawal on your 2021 taxes, TurboTax would have automatically added the $2,400 as additional income. This would show up on Schedule 1 Line 8e, which goes to Form 1040 Line 8. There would have been no 6% penalty.

If you took the excess distribution in 2022, next year you will receive a 1099-SA for the $2,400 plus any earnings. Any earnings will be taxable income, but will not be reported until next year.