Enter this on eFileIT Form 2555. Taxable Health Savings Account Distribution Distributions from your HSA or Archer MSA are generally taxable if spent on nonqualified expenses. Report these using Form 8889 for HSAs or Form 8853 for MSAs. See how to report additional tax. Alaska Permanent Fund ...
It's easy to see IRS Form 1099 as representing a big liability since it reports income that hasn't already been taxed in the form of withholding.