General Instructions for Certain Information Returns (Forms 1097, 1098, 1099, 3921, 3922, 5498 and W-2G) Form 1099-SA is an important form when you report special account distributions to pay for medical expenses. The form contains specific information that must be declared correctly and may or may not mean that you owe additional taxes. If you have any questions, work with a tax advisor or expert. Form 1099-SA will be available on the members` website from mid-January to the end of January if you had distributions the previous year. If you have opted for paper documents, you will receive your 1099-SA by mail at the end of January/beginning of February. HSA contributions that exceed the IRS ANNUAL LIMIT must be removed before the tax filing deadline, otherwise tax penalties and/or IRS fees may apply. Withdrawals of excess contributions are reported in the year in which the removal was made, not in which the excess was made. For example, if you made excess contributions in the previous year but withdraw the excess that year, you will receive a 1099-SA for the current year that shows the distance. Even if the excess is removed, please note that 5498-SA still displays the message.

You can get copies of your latest tax forms by logging into your account. One. In addition to the forms above, keep track of your expenses in case you need to prove that you used funds for eligible medical expenses. It`s up to you to keep track of your expenses and report any funds you use for unqualified medical expenses. 1099-SA is used to report any distribution (withdrawal) of funds from your HSA during the previous year. You must report the distributions of your HSA on IRS Form 8889. Some account holders receive their 5498-SA in January with their 1099-SA. If you receive your 5498-SA at that time and then contribute to the previous year, you will receive an updated 5498-SA. You will not get a Form 5498-SA if you had no contributions and your balance at the end of the year was zero dollars. Form 5498-SA is usually delivered within one month of the tax return deadline, so that all contributions made during the current year for the previous year can be taken into account. (If you make additional HSA contributions for the previous year after the issuance of the 5498-SA, you will receive an updated 5498-SA.) HSA Tax Time 101 is a resource that provides answers to some of the most frequently asked tax questions about the Health Savings Account (HSA). We have divided the FAQs into three categories: tax documents; contributions and distributions; and tax time reminders.

Please see irs.gov for additional information and resources, including IRS Publication 969, which explains the tax benefits and requirements of an HSA. MSA distributions that are not used for eligible medical expenses are subject to the same tax consequences as HSAs. You report taxable and tax-free distributions on Form 8853 and calculate the additional 20% tax on the taxable portion of your distributions directly on the form. Taxable MSA distributions are reported on your tax return in the same way as HSAs, but the rating you make in the „Other income“ line should be „MSA“. (Again, TurboTax fills out the right forms for you.) Instructions for Forms 1099-SA and 5498-SA (printed PDF version) Your employer`s HSA contributions are reported on your W2 and included in the total account contributions listed on Form 5498-SA. Their health accounts offer excellent tax benefits on contributions, distributions and income. We help you manage your accounts by providing you with certain tax forms and instructions for your tax return. Form 5498-SA 5498-SA shows all contributions to your HSA for the previous year, including those made between January 1 and the current year`s tax filing deadline. It also declares your HSA balance as of December 31 of the previous year. You will receive an email as soon as this form is available. If you have opted for paper documents, you will receive this form by mail. You will not get a Form 5498-SA if you had no contributions and your balance at the end of the year was zero dollars.

You must report your HSA`s contributions on IRS Form 8889. Information about 5498-SA can be found here. If you are using funds from a Health Savings Account (HSA) or Medical Savings Account (MSA) such as an Archer MSA or Medicare MSA, the institution that manages the account must report all distributions on Form 1099-SA. 1099-SA IMPORTANT: You will NOT receive this form if you have NOT withdrawn money from your HSA in the previous year. If you make excess contributions, you can avoid being penalized by completing an excess contribution application form and filing corrections to return the excess funds. This and other account forms are available after registration. You will receive IRS Form 1099-SA and IRS Form 5498-SA by mail or electronically (depending on your chosen delivery preference). These IRS tax forms are also available on the members` website. Please use the information in your Form 1099-SA, available online, to complete IRS Tax Form 8889.

Form 8889 is the only form you need to file your tax returns. You can find IRS Tax Form 8889 in the „Statements and Documents“ section after logging into your account. Receiving Form 1099-AS means that, depending on the distributions you have received from which accounts, there are certain tax forms that you must file. Luckily, if you have an HSA, Archer MSA, or MA MSA, you`ve probably saved taxes. You can deduct contributions from the year you made them, and the use of funds is often tax-free as long as withdrawals for eligible health expenses are spent on the account beneficiary or the beneficiary`s spouse or dependents. IRS Form 8889 is used to report HSA contributions, distributions, and your tax deductions. You complete this form using IRS Forms 1099-SA and 5498-SA provided by HSA Bank. The financial institution that manages the account is responsible for sending you a copy of Form 1099-SA. If you haven`t received one yet and you think you should have it, contact them. On the left side of Form 1099-SA, you will find the name, address and telephone number of the trustee or payer. the payer`s Tax Identification Number (TIN), in whole or in part; Your TIN, Social Security Number, Individual Tax Identification Number, Adoption Tax Number, or Employer Identification Number (EIN), in whole or in part; Your name and address; and your account number.

For more information on the interaction between a health FSA and an HSA, see IRS Publication 969 (see „Other Employee Health Plans“ section). The IRS requires you to prepare Form 8889 and attach it to your tax return if you take a distribution of an HSA. However, if your 1099-AS indicates that you did not use the distribution for eligible medical expenses, you will pay income tax on the portion you used for ineligible expenses. You declare the tax base in the „Other income“ line of your tax return and write „HSA“ next to it. You will also have to pay an additional 20% tax on the taxable portion of your distribution that you charge on Form 8889. (TurboTax does the math and fills out all the right forms for you.) One. Each state may decide to follow federal tax guidelines for HSAs or to establish its own. Please consult a tax advisor regarding your state`s rules or visit your state tax office for more information. Eligible HSA contributions are taxed by the following states: Contact your financial advisor or the State Treasury Department for more information. For more information on the third coronavirus relief plan, see our blog post, „American Rescue Plan: What Does it Means for You and a Third Stimulus Check.“ If you use a distribution code No. 5 in box 3 of a 1099-SA, it means that you have not used all the distributions in your account for eligible medical expenses. This means that you will have to report part of the distribution on your tax return.

If necessary, you can take tax-free distributions from your account to pay for eligible medical expenses of the account beneficiary or the beneficiary`s spouse or dependents. You will receive a Form 1099-SA that shows the total amount of your annual distributions (i.e., the money you use) shown in Box 1. If you are using the funds only to pay for eligible medical expenses, box 3 should indicate distribution code #1, which shows normal tax-free distributions. IRS contribution limits for individual and family plans typically increase each year. In addition, individual account holders over the age of 55 can make an additional $1,000 catch-up contribution. Eligible spouses over the age of 55 can only make catch-up contributions to their account. For more information, visit our IRS Guidelines and Eligible Expenses page. This form is provided for informational purposes only and does not need to be filed with your tax return. You can retrieve your 1099-SA and 5498-SA forms by clicking the Message Center tab, and then clicking the View Instructions link. You will not get a Form 5498-SA if you had no contributions and your balance at the end of the year was zero dollars. Information about 5498-SA can be found here. For more information about your HSA tax forms, see Tax Time 101.

IRS Form 5498-SA is generally available towards the end of January. If you contribute in the new year for the previous tax year, you will also receive another Form 5498 SA in May. Form 1099-SA, Distributions of an HSA, Archer MSA, or Medicare Advantage MSA, is the Internal Revenue Service (IRS) form you receive when you need to add a distribution of a Health Savings Account (HSA), Archer Medical Savings Account (MSA), or Medicare Advantage (MA) MSA to your federal taxes. .