Non taxable HSA distribution is added to taxable on Sch 1

[COSkiBum]

I have a client that had a HSA distribution on a 1099SA and used it all of qualified medical expense.  On the 8889-S, line 16 shows a "0" taxable amount and says to enter on Sch 1, line 8e.  When I go to Sch 1 line 8e, it should the whole distribution as taxable.  What am I doing wrong?  Thanks.

P.S.  I did search this topic but all the info was from 2019 and not useful.  

[dascpa · Accepted solution]

On the 1099-SA Worksheet did you check distribution code 1, and mark the two boxes for HSA and full amount in box 1 was used for qualified medical expenses?  That will make the 8889-T or S tax-free.

[Just-Lisa-Now-]

Fille out the 1099SA worksheet, dont the amount enter it on the 8889.

Then you need to mark the Self or Family box in the smart worksheet below Line 2 on the 8889. 

Dont enter anything else on the 8889

[COSkiBum]

Thank you for your quick response.  That worked for me  Happy Day!

[COSkiBum]

Thank you for getting back to me so quickly.  I had done the 1099SA correctly, the issue was on the 8889S.  Thanks to all for your help.  Happy Day