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1099-SA vs. 5498-SA

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I am doing my daughter's taxes. She has $1,899.08 as Gross Distribution per her 1099-SA and $1,100.08 for Total Contributions per her 5498-SA. On the tax software I am using it asks to enter the qualified medical expenses paid with the funds received in your distribution. Her medical expenses were $2,100 and when I put that in her refund went up $400.00. Does that seem right?

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  • 1 year later...

Opinion only....You should only enter the amount that was distributed from the HSA for qualified medical expenses $1899.08. You wouldn't enter $2,100 unless the HSA actually distributed the amount from that account. The amount entered should be $1899.08 in my opinion. It is checking to see if there was a distribution that possible took place that should be taxed such as spending $20 on groceries included in the $1899.08. In that case you would say $1879.08 for qualified medical expenses, the system will then know to apply tax on the $20 paid from the HSA. If your child had a massive amount of medical expenses there is a different section that you would work through for a deduction, but most people wont be able to use that section unless they don't have insurance or they have a high deductible and/or OOP plan. I am not an accountant, but I use a tax filing software and the software looking to determine if any of the distribution should be taxable.

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