HSA Distribution

[Unregistered]

Client had a distribution from a HSA for $1164.Paid medical bill with the money.Had on other medical bills except for the $1164.Said their deductible was $1700 for the year but did not pay the deductible on paid the $1164.As I missing something.Would the the $1164 be taxable with the 10% penalty.My first time having a HSA distribution and software program has the amt as taxable.

[Unregistered]

HSA Distribution

Open form 8889 in your software and complete it. This should take care of your problem. In other words, it shouldn't be taxable.