Tax Information for 2008 HSA Owners

Jan. 30, 2009

 

If you had a Health Savings Account (HSA) in 2008, you will need to include certain information on your 2008 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 on line 25 as adjusted gross income on Form 1040. View 8889 Instructions and 8889 Form.

 

IRS Form 5498-SA

You will receive Form 5498-SA from Bank of America in May 2008. In order to complete form 8889, you should refer to your Bank of America monthly account statement.  This will help to figure your contributions to report after you have made your final contribution for 2007.  When you receive Form 5498-SA from Bank of America, you will want to compare the amount reported on the form to the amount you reported on your Form 8889.  Keep this form with your income tax records. Visit the IRS web site for more information about Form 5498-SA. (www.irs.gov)

 

IRS Form 1099-SA

Bank of America will mail Form 1099-SA, reflecting withdrawals from your account during 2008, no later than Jan. 31, 2009.  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 regarding Federal tax obligations for HSA account holders and is not intended to be tax advice. State income tax rules for HSA’s vary.  Please refer to your tax specialist or state laws and forms for instructions on how to file.