For Tax Year 2012 I had an excess contribution to my HSA. In calendar year 2013, before the filing deadline I removed the excess contribution to avoid the penalty. However, the bank holding my HSA still issued a
1099-SA for 2013 since the actual distribution occurred in 2013 (even though it was for tax year 2012).
The bank which holds the HSA told me I do not need to do anything with this if it was accounted for in my 2012 taxes and that I could ignore this. My accountant said there is no way to record this and that it must show up on my taxes for 2013 because is a 2013
I have proof that the deposit was removed for the correct tax year. The account says I should have to report this Section II of
Form-8889; however, any way I try to figure this it makes me report it as the penalty amount, there is no place on this form to reverse and note its not subject to a penalty - how do I fix this to make sure its reflected properly and I don't pay any penalties which I do not have to pay.