Handling HSA prior year excess contribution & 1099-SA

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bluebolt
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Joined: Sat Jan 14, 2017 8:01 am

Handling HSA prior year excess contribution & 1099-SA

Post by bluebolt »

In tax year 2019, I had a $7000 excess contribution to an HSA which was distributed to me prior to filing 2019 taxes and was included as Other Income on line 7a of my 2019 taxes.

I received a 2020 1099-SA from the HSA provider for the $7000 amount with a box 3 Distribution code of 2 (excess contribution).

Can I just ignore this since I already paid taxes on it in 2019? Or, do I need to acknowledge it in some way?

If I answer yes to whether I received a 1099-SA in H&R Block and say I didn't use it for medical expenses, it includes it as income, which is incorrect since I already paid.

Any recommendations would be appreciated.
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