Form 1099-SA is used to show distributions from:
⦁ Health Savings Account (HSA)
⦁ Archer Medical Savings Account (MSA)
⦁ Medicare Advantage (MA) MSA.
What is a Form 8889 or Form 8853?
File Form 8889 or Form 8853 with your Form 1040 or 1040-SR to report a distribution from these accounts even if the distribution isn’t taxable. The payer isn’t required to compute the taxable amount of any distribution.
To enter this within the program, please go to:
- Federal Section
- Deductions - Select My Forms
- Adjustments to Income
- Health Savings Account Form 8889 or Medical Savings Account Form 8853
Are my HSA or Archer MSA taxable?
An HSA or Archer MSA distribution isn’t taxable if you used it to pay qualified medical expenses of the account holder or eligible family member or you rolled it over. An HSA may be rolled over to another HSA; an Archer MSA may be rolled over to another Archer MSA or an HSA. An MA MSA isn’t taxable if you used it to pay qualified medical expenses of the account holder only.
If you didn’t use the distribution from an HSA, Archer MSA, or MA MSA to pay for qualified medical expenses, or in the case of an HSA or Archer MSA, you didn’t roll it over, you must include the distribution in your income (see Form 8853 or Form 8889). Also, you may owe a penalty.
You may repay a mistaken distribution from an HSA no later than April 15 following the first year you knew or should have known the distribution was a mistake, providing the trustee allows the repayment.
To view a sample Form 1099-SA, click here