A Health Savings Account (HSA) is a tax-advantaged account that helps you pay for qualified medical expenses. The IRS requires you to report both HSA contributions and distributions on your tax return, so it's important to have the right forms before you file.
HSA Contributions
If you contributed money to an HSA during the year, those contributions may be tax-deductible.
You should receive Form 5498-SA, which reports the total amount contributed to your HSA. To confirm the form is for your HSA, look for the HSA checkbox in Box 6.
Keep in mind that contributions can come from several sources, including:
- Contributions you made yourself
- Employer contributions
- Contributions made on your behalf by someone else
HSA Withdrawals
If you took money out of your HSA during the year, the IRS requires you to report those distributions.
You should receive Form 1099-SA, which shows the amount withdrawn from your account. To verify the form relates to your HSA, check that the HSA box is marked in Box 5.
Most HSA withdrawals are tax-free when used to pay qualified medical expenses. However, distributions used for non-qualified expenses may be subject to income tax and additional penalties.