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02-15-2016 10:39 AM
I have an HSA account for my HDHP and used some of those monies for 2015 medical related events. This is supposed to be tax free. When I plug it into H&R Block desktop software, it is treating this is a taxable distribution on top of a 20% penalty since I am 35 yrs old. Why is it doing this? This is incorrect
02-19-2016 10:42 AM
So I just got the Feb 19 update and this is still a problem. I cannot enter distribution code of "1" on the 1099-SA form. It is treating this distribution as taxable.
Anyone seen a fix for this?
03-14-2016 09:55 PM - edited 03-14-2016 09:56 PM
Distributions from your HSA are entered directly on form 8889, part ll, line 14a. Medical expenses paid with the distribution are entered on line 15. If the entire distribution was used for qualified medical expenses no penalty will be calculated.
12-21-2017 11:58 PM
Best way I thought - the way I solved it !!
Fill Up Form 8889. For example the 2016 Form. The software will bring it up. WHATEVER distributions are shown in 1099-SA as being taken by You - use the same number as Being Used as Qualified Medical Expenses in Part B so that Distributions MINUS the Qualified Expenses are Zero which implies that Taxable Distribution is Zero. Basically a normal family when having the HSA account uses the health card or equivalent for Qualified Medical Expenses.