Tax Advantage Accounts
Tax Information for HSA Owners
If you had a Health Savings Account (HSA) last year, you will need to include certain information on your Federal income tax filing.
IRS Forms 1040 and 8889
You will need to report HSA contributions and distributions on Federal Form 8889. After you have completed Form 8889, you report the calculated deduction as adjusted gross income on Form 1040. View 8889 Instructions and 8889 Form.
IRS Form 5498-SA - contributions
You will receive Form 5498-SA from your HSA custodian showing previous year contributions. You will need to report this amount on Form 8889. Visit the IRS web site for more information about Form 5498-SA. (www.irs.gov)
IRS Form 1099-SA - withdrawals
You will receive Form 1099-SA from your HSA custodian, reflecting withdrawals from your account from the previous year. You need to report this amount on Form 8889. Any distributions must be for a qualified health cost in order to be non-taxable (See IRS publication 502). You should keep all receipts for eligible expenses corresponding to HSA withdrawals with your tax records. Visit the IRS web site for more information about Form 1099-SA. (www.irs.gov)
If you contributed more than the maximum or made withdrawals for non-qualified expenses, those funds may be subject to taxation or penalties. Please see your tax advisor if you have any questions.
This article is informational only and is not intended to be Federal tax advice. State income tax rules for HSAs vary. Please refer to your tax specialist or state laws and forms for instructions on how to file.