In tax year 2019, I had a $7000 excess contribution to an HSA which was distributed to me prior to filing 2019 taxes and was included as Other Income on line 7a of my 2019 taxes.
I received a 2020 1099-SA from the HSA provider for the $7000 amount with a box 3 Distribution code of 2 (excess contribution).
Can I just ignore this since I already paid taxes on it in 2019? Or, do I need to acknowledge it in some way?
If I answer yes to whether I received a 1099-SA in H&R Block and say I didn't use it for medical expenses, it includes it as income, which is incorrect since I already paid.
Any recommendations would be appreciated.