How do I complete the Health Savings Account section (Form 8889) in the return?

Program Entry

• Federal
• Deductions - Select my forms
• Adjustments to Income
• Health Savings Account HSAs, Form 8889

Form 5498-SA reports contributions made to your IRA, Health Savings Account (HSA), Archer Medical Savings Account (MSA), or Medicare Advantage MSA (MA MSA).

Type of Plan

In the program, you will be asked to first choose the type of plan: Self-only or Family

1. If you were covered, or considered covered, by a self-only HDHP and a family HDHP at different times during the year, check the box for the plan that was in effect for a longer period.
2. If you were covered by both a self-only HDHP and a family HDHP at the same time, you are treated as having family coverage during that period.
3. If, on the first day of the last month of your tax year (December 1 for most taxpayers), you had family coverage, check the “family” box.

HSA Contributions

HSA Contributions you made for 2025- Pulls to 8889 Line 2, Form 8889

1. Include only the amounts you, or others on your behalf, contributed to your HSA in 2025.
2. Include contributions made in the current tax year until April 15 that were designated as being for the prior year.
   • Example: You made contributions on March 15, 2026 for the 2025 tax year AND indicated the contributions were for tax year 2025.
3. Do not include contributions that were already reported on your W-2, rollover contributions or employer contributions.
4. Contributions to an employee's account through a cafeteria plan are treated as employer contributions and are not included.
5. You cannot include any contributions for any month in which you were enrolled in Medicare
6. You cannot include contributions if you are someone else's dependent for 2025.

Number of months you were considered an eligible individual this tax year.

Your eligibility is based on your coverage status on the first day of the month.

1. Use the family coverage amount if you or your spouse had an HDHP with
   family coverage. Disregard any plan with self-only coverage.
2. If you are eligible to contribute to an HSA on the first day of the last month of your tax
   year, you are considered eligible for the entire year, provided you stay enrolled in an HSA
   qualifying HDHP. For example, you are eligible to contribute to an HSA by December 1, 2025
   and stay eligible through December 31, 2026.

Amount you and your employer contributed to your Archer MSAs for 2025 from Form 8853, lines 3 and 4. If you and your spouse had family coverage under an HDHP at any time during the tax year, also include any amount contributed to your spouse's Archer MSA. Pulls to 8889 Line 4, Form 8889

• Include only the amounts that you and your employer contributed to your ARCHER MSA. 

Adjustment to Box 12 Code W - Pulls to 8889 Line 9

1. If either of the following apply, complete the Employer Contribution Worksheet to figure the amount to enter on this line
   • Employer contributions for 2025 are included in the amount reported in box 12 of Form W-2 with code W.
   •  Employer contributions for 2025 are made in 2026.
2. We will automatically pull your employer contributions from your W-2 (Box 12 Code W) .DO NOT enter amounts from your W-2.
3. If your employer made excess contributions, you may have to report the excess as income.

Qualified HSA Funding Distributions from IRA or ROTH IRA - Pulls to 8889 Line 10, Form 8889

A distribution from your traditional IRA or Roth IRA to your HSA in a direct trustee-to-trustee transfer is called an HSA funding distribution. These funds are not being distributed from your HSA, but rather are being distributed from your IRA and contributed to your HSA.

1. The distribution reduces the amount that can be contributed to your HSA by you and from other
   sources (including employer contributions).
2. The qualified HSA funding distribution is not included in your income, it is not deductible.
3. You can make only one qualified HSA funding distribution during your lifetime. See the 8889 instructions for exceptions and more information.

HSA Distributions

Form 1099-SA reports distributions from a health Savings Account, Archer Medical Savings Account or Medicare Advantage MSA

Total HSA distributions received during 2025 - Pulls to line 14a, Form 8889

Total distributions include:

• amounts paid with a debit card that restricts payments to health care and
• amounts withdrawn by other individuals that you have designated

Distributions used for qualified medical expenses - Pulls to line 15, Form 8889

1. Include distributions from your HSA that were used to pay for qualified medical expenses not reimbursed by insurance or other coverage and that you incurred after the HSA was established.
2. Do not include the distribution of an excess contribution taken out after the due date, including
   extensions, of your return even if used for qualified medical expenses.
3. In general, include distributions from all HSAs in 2025 that were used for the qualified medical expenses of:
   • You and your spouse.
   • All your dependents.
   • Any person who would be a dependent except that:
     • The person filed a joint return.
     • The person had gross income.
     • You, or your spouse if filing jointly, are dependents of someone else.

NOTE: If you do not enter an amount here your entire distribution will be considered taxable

Distributions you received in 2025 that you rolled over into another HSA. Also include any excess contributions (and the earnings on those excess) - Pulls to line 14b, Form 8889

1. Include any distributions you received in 2024 that qualified as a rollover contribution to another HSA.
2. Include any excess contributions (and the earnings on those excess contributions) included
   on line 14a that were withdrawn by the due date, including extensions, of your return. 
3. Exceptions - The additional 20% tax does not apply to distributions made after the account beneficiary dies, becomes disabled, or turns age 65.

Did you receive any distributions that meet the exceptions to the additional 20% tax?

Amount to Exclude - Pulls to line 17a, Form 8889

HSA distributions included in income are subject to an additional 20% tax.

EXCEPTION: The additional 20% tax does not apply to distributions made after the account beneficiary:

• Dies,
• Becomes disabled, or
• Turns age 65

HSA Adjustments

Did you change your coverage during the tax year?

1. If you were considered an eligible individual for the entire year and you changed your type of coverage during the year, enter the greater of:
   • The limitation shown on the last line of the worksheet, or
   • The maximum amount that can be contributed based on the type of HDHP coverage you had on the first day of the last month of your tax year.
   • Use the worksheet in the instructions to figure the amount to enter here
2. This entry will adjust (not replace) the amount reported on Form 8889, Line 3

Did you and your spouse have separate HSAs with family coverage under a high deductible health plan?, see Page 4 of the Instructions for the amount to enter. 

1. Spouses who have separate HSAs and had family coverage under an HDHP at any time during 2024, use the following rules to figure the amount on line 6.
   • If you are treated as having family coverage for each month, divide the amount on line 5 equally between you and your spouse, unless you both agree on a different allocation (such as
     allocating nothing to one spouse). Enter your allocable share on line 6.
   • If you are not treated as having family coverage for each month, refer to the instructions for the steps needed to figure the amount to enter. 
2. This entry will adjust (not replace) the amount reported on Form 8889, Line 6

Did you and your spouse have separate HSAs with family coverage under a high-deductible health plan and you were age 55 or older at the end of the tax year?

1. If, at the end of 2025, you were age 55 or older and married, use the Additional
   Contribution Amount Worksheet if both of the following apply.
   • You or your spouse had family coverage under an HDHP and were, or were considered to be, an eligible individual on the first day of the month.
   • You were not enrolled in Medicare for the month.
2. This will be reported on Form 8889, Line 7.