To report health savings account contributions, distributions, or to report any adjustments, please go to:
- Federal Section
- Select My Forms
- Adjustments to Income
- Health Savings Account Form 8889
What are HSA Contributions?
Health Savings Accounts (HSAs) are tax-exempt accounts that allow you to make contributions to help pay for medical expenses. Typically, contributions made to an HSA are deductible. If you have made any contributions to an HSA account, you should receive Form 5498-SA listing your contribution information (Box 6 should be checked indicating an HSA account).
Please keep in mind that contributions made through your employer's cafeteria plan should not be reported again in the program. Contributions reported on the W-2 Box 12 with Code W are those contributions made with pretax dollars are so they are not eligible for an additional tax deduction.
NOTE: Per the IRS, “If you are age 55 or older at the end of your tax year, you can make an additional contribution of $1,000.”
The maximum contribution that you make to your HSA is reduced by any contributions made by an employer, any contributions that were made to an Archer MSA, or any qualified HSA funding distributions.
Please refer to the IRS Instructions for Forms 1099-SA and 5498-SA for more information.
What are HSA Distributions?
A distribution is any money that an owner of an HSA takes out. Any distributions that were taken out of an HSA and used exclusively to pay for any qualified medical expenses of the account beneficiary or their spouse/dependents are excludable from gross income.
You will report the entire distribution as shown on your 1099-SA as well as the amount used for qualified medical expenses. If you did not use all of the distribution to pay qualified medical expenses, the remaining amount will be considered taxable income on the return and pulled to line 1.
How do I figure my HSA Deduction?
When figuring your HSA deduction, you will need to keep in mind the type of HDHP coverage that you have. For self-employed coverage, your maximum contribution is $3,650. For family coverage, your maximum contribution is $7,300.
The program will automatically calculate your deduction based on the entries made.
Please refer to the IRS Instructions for Form 8889 for more information.