rbynaker
Level 13
12-07-2019
05:39 AM
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Yeah, I've fought with these before in ProSeries. I'm not quite sure what the right answer is. In the real world you get something like this:
$2,000 HSA contribution
$1,500 Medical expenses paid with HSA debit card
Tax day comes around and your tax preparer tells you that you're not eligible so you need a corrective distribution on the $2,000 that you contributed.
You call up the bank, "Hey banker, can I get my $2,000 back, my accountant says you need to do some kind of corrected distinction?"
Then the banker starts talking about the weather . . . "Do you mean a $2,000 corrective distribution? HAIL NO, you've only got $500 in the account!"
So just keep hammering on ProSeries until you get the employer contribution to be taxable income and (assuming it's withdrawn in time) not subject to penalty. There are some "worksheets" buried in the 8829 form in PS where you can change what actually shows up on the form.
$2,000 HSA contribution
$1,500 Medical expenses paid with HSA debit card
Tax day comes around and your tax preparer tells you that you're not eligible so you need a corrective distribution on the $2,000 that you contributed.
You call up the bank, "Hey banker, can I get my $2,000 back, my accountant says you need to do some kind of corrected distinction?"
Then the banker starts talking about the weather . . . "Do you mean a $2,000 corrective distribution? HAIL NO, you've only got $500 in the account!"
So just keep hammering on ProSeries until you get the employer contribution to be taxable income and (assuming it's withdrawn in time) not subject to penalty. There are some "worksheets" buried in the 8829 form in PS where you can change what actually shows up on the form.
