What IRS form reports HSA distributions?
Asked by: Caleigh Weissnat | Last update: December 30, 2023Score: 4.6/5 (56 votes)
File Form 8889 to: Report health savings account (HSA) contributions (including those made on your behalf and employer contributions). Figure your HSA deduction. Report distributions from HSAs.
What IRS form shows HSA distributions?
File Form 1099-SA to report distributions made from a: Health savings account (HSA).
How do I report HSA distributions on Form 1040?
HSA distributions are reported to the account owner on Form 1099-SA. This form is issued by the financial institution. Form 8889 must be filed with your annual Form 1040 federal tax filing if you make contributions to or take distributions from an HSA.
Where do I report distributions from HSA?
If you (or your spouse, if filing jointly) received HSA distributions in 2022, you must file Form 8889 with Form 1040, Form 1040-SR, or Form 1040-NR, even if you have no taxable income or any other reason for filing Form 1040, Form 1040-SR, or Form 1040-NR.
Do you get a 1099-SA for an HSA?
What tax documents will I get from HSA Bank? You may get both a 1099-SA and 5498-SA from us. IMPORTANT: You WON'T receive this form if you DIDN'T withdraw funds from your HSA in the prior year. The 1099-SA is used to report any distribution (withdrawal) of funds from your HSA during the prior year.
Health Savings Account HSA Tax Forms and Tax Reporting Explained!
Who issues 1099-SA for HSA?
Form 1099-SA is filed by providers of HSAs or MSAs, including Archer and Medicare MSAs. These forms are sent to individual account holders and the IRS. Like other 1099 forms, the issuing entity should send it to the taxpayer by the end of January each year.
What is the difference between 5498-SA and 1099-SA?
IRS form 1099-SA shows the amount of money you spent from your HSA during the tax year. IRS form 5498-SA shows the amount of money deposited into your HSA for the tax year. IRS form 8889 is the form you fill out and submit with your tax return.
Are HSA distributions considered income?
HSA distributions taken to pay for eligible medical expenses are not taxable, but they still must be reported to the Internal Revenue Service (IRS).
Do I have to report HSA withdrawals?
Verification of expenses is not required for HSAs. However, total withdrawals from your HSA are reported to the IRS on Form 1099-SA. You are responsible for reporting qualified and non-qualified withdrawals when completing your taxes.
How do I show HSA on my tax return?
The amount that you withdrew from your HSA goes on Line 14, and the portion of the withdrawals that you used for qualified medical expenses goes on Line 15 (make sure you have receipts to document all of the medical bills you paid — you don't have to send them to the IRS, but you'll need them if you're ever audited).
Do I need to report Form 1099-SA on my tax return?
IRS Requirements
If you have an HSA, you need to include information from two IRS forms – Form 1099-SA and Form 8889 – on your 1040 tax form. Form 1099-SA reports the total distributions (withdrawals) made from your HSA account during the taxable year. Form 8889 reports all contributions made to your account.
What if I forgot to include a 1099-SA on my tax return?
If you catch the error before the IRS does, then you should file an amended tax return using Form 1040-X, Amended U.S. Individual Tax Return. Be sure to include a copy of the 1099 with the amended return and include a payment for any additional tax that you owe.
Where do I enter 1099-SA?
To enter amounts reported on the 1099-SA:
Enter the amount from box 1 in Total HSA distributions received (1099-SA, Box 1). Enter any applicable medical expenses in Qualified unreimbursed medical expenses paid using HSA distributions (and not entered elsewhere). Scroll up to the Excess Contributions (5329) section.
What tax forms should I get for my HSA?
Health Savings Account (HSA)
You will receive the IRS Form 1099-SA and IRS Form 5498-SA either by mail or electronically (based upon your elected delivery preference). These IRS tax forms are also available in the Member Website.
What happens if you don't file form 8889?
If you hold an HSA account (or are the beneficiary of a deceased HSA holder), you're required to attach Form 8889 to your Form 1040 when filing your personal income tax or information return. If you fail to do so, you'll be unable to deduct your HSA contributions.
Why do I have two 1099-SA forms?
You may receive more than one Form 1099-SA, because distribution information on each form is limited to one account and one distribution code.
What happens if I withdraw money from my HSA account?
You can withdraw funds from your HSA anytime. But keep in mind that if you use HSA funds for any reason other than to pay for a qualified medical expense, those funds will be taxed as ordinary income, and the IRS will impose a 20% penalty.
Do HSA distributions get audited?
HSA reimbursements need matching receipts.
When using an HSA debit card, retain receipts for each transaction as those expenses will be reported to the IRS, and you could be audited.
Are HSA distributions reported to IRS?
HSA distributions
The IRS requires you to prepare Form 8889 and attach it to your tax return when you take a distribution from an HSA. However, if your 1099-SA indicates you did not use the distribution for qualified medical expenses, you will pay income tax on the portion you used for nonqualified expenses.
Is a HSA withdrawal the same as a distribution?
When used for eligible expenses, HSA withdrawals (also called HSA distributions) are tax-free and do not incur any penalty. Many HSA owners ask if they can use the money for non-qualified expenses, and if so, whether they would incur a withdrawal penalty.
What is a 5498-SA tax form?
Form 5498-SA reports your annual contributions to these tax-free accounts that you use to pay for medical expenses. Contributions to similar accounts, such as Archer Medical Savings Accounts and Medicare Advantage MSAs will also warrant a Form 5498-SA. This form must be mailed to participants and the IRS by May 31.
Why did I get a 1099 SA but not 5498 SA?
The IRS Form 1099-SA is used for reporting HSA distributions; the IRS Form 5498-SA is used for reporting contributions. If you did not have contributions during the year, then you will not see the IRS Form 5498-SA.
Do I have to report form 5498 on my tax return?
No. You aren't required to do anything with Form 5498 because it's for informational purposes only. Please be sure to keep this form for your records as you'll need this information to calculate your taxable income when you decide to take distributions from your IRA.
Does 5498 SA go to IRS?
This information is submitted to the IRS by the trustee of your health savings account (HSA), Archer medical savings account (MSA), or Medicare Advantage MSA (MA MSA). Generally, contributions you make to your Archer MSA are deductible. Employer contributions are excluded from your income and aren't deductible by you.
Where do I enter 5498 SA in TurboTax?
Form 5498-SA reports contributions to your Health Savings Account (HSA), Archer MSA, or Medicare Advantage MSA. You don't enter this form into TurboTax; your account custodian sends it to you for informational purposes only. We recommend that you keep it with your tax return records.