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The client is rather new and I don't have a history of her HSA available funds. So the distribution becomes taxable. Is there a line on Form 8889 where I indicate that there are funds in the HSA that she can w/d taxfree?
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Not sure I follow.....if she used the HSA funds for medical expenses, its not taxable,
You need to mark the Self or Family box in the smart worksheet below Line 2 on the 8889 and it wont be a taxable distribution.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Yes, that box on the 1099SA needs to be checked, but the 8889 bugs you for an ending HSA value and still makes things taxable if you dont mark that self or family box in the smartworksheet.
That box really should be lit up pink so people know one or the other needs to be checked.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪