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June 1, 2019
Question

As I enter my wife's 1099-SA gross distribution amount our taxes due go up. I thought that HSA contributions and distributions were tax free? Are the distributions taxed?

  • June 1, 2019
  • 1 reply
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Simply put, are the distributions from an HSA account taxable? I thought the money going in and coming out of the account were not taxed.

1 reply

Employee
June 1, 2019

Just keep going.  You have to continue and answer a question about whether the money was used only for qualifying medical expenses.  The taxes should go back down/refund should go back up.

Also, some states may tax HSA withdrawals even though the IRS does not, if only your state refund is changing.