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.
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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.
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.
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
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
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