If you had a Health Savings Account (HSA) during the tax year, you'll need to complete Form 8889 to report your HSA contributions, employer contributions, and any distributions you received.
Program Entry
Navigate to:
- Federal
- Deductions - Select My Forms
- Adjustments to Income
- Health Savings Accounts (HSAs), Form 8889
Select Your HDHP Coverage Type
Choose the type of High Deductible Health Plan (HDHP) coverage you had during the year:
- Self-only coverage
- Family coverage
Use these rules when selecting your coverage type:
- If you had self-only and family coverage at different times during the year, choose the coverage type you had for the longer period.
- If you had both self-only and family coverage at the same time, you're treated as having family coverage.
- If you had family coverage on December 1, you're generally treated as having family coverage for that period.
HSA Contributions
HSA Contributions You Made for the Tax Year
(Reported on Form 8889, Line 2)
Enter contributions made directly to your HSA, including:
- Contributions you personally made during the tax year.
- Contributions made on your behalf by another person.
- Contributions made by the tax filing deadline that were designated for the current tax year.
Do not include:
- Employer contributions.
- Amounts reported in Box 12 of Form W-2 with Code W.
- Cafeteria plan contributions.
- Rollover contributions.
- Contributions made for months when you were enrolled in Medicare.
- Contributions made while you were eligible to be claimed as someone else's dependent.
Number of Months You Were an Eligible Individual
Your eligibility is determined by your HSA status on the first day of each month.
Generally, you are an eligible individual if:
- You were covered by a qualified HDHP.
- You had no disqualifying health coverage.
- You were not enrolled in Medicare.
- You could not be claimed as someone else's dependent.
Under the "last-month rule," if you were eligible on December 1 and remained eligible through the testing period, you may be treated as eligible for the entire year.
Archer MSA Contributions
Amount Contributed to an Archer MSA
(Reported on Form 8889, Line 4)
Enter contributions made by you and your employer to an Archer Medical Savings Account (MSA).
If you and your spouse had family HDHP coverage, also include any qualifying Archer MSA contributions made to your spouse's account when applicable.
Adjustment to Employer Contributions (Box 12 Code W)
Adjustment to Box 12 Code W
(Reported on Form 8889, Line 9)
Your software automatically pulls employer HSA contributions reported on your Form W-2 with Code W.
Do not enter those amounts again.
An adjustment may be necessary if:
- Employer contributions for the tax year were actually made during the following year, or
- Excess employer contributions were made.
Use the IRS Employer Contribution Worksheet to calculate any required adjustment.
Qualified HSA Funding Distributions From an IRA
IRA-to-HSA Transfers
(Reported on Form 8889, Line 10)
A qualified HSA funding distribution is a direct trustee-to-trustee transfer from:
- A Traditional IRA, or
- A Roth IRA
to your HSA.
Important rules:
- The transfer is not taxable.
- The transfer is not deductible.
- The amount transferred reduces your annual HSA contribution limit.
- In general, only one qualified HSA funding distribution is allowed during your lifetime.
HSA Distributions
Use information from Form 1099-SA to complete this section.
Total HSA Distributions Received
(Reported on Form 8889, Line 14a)
Enter the total amount distributed from your HSA during the year, including:
- Debit card transactions from the HSA.
- Withdrawals made by authorized individuals.
Distributions Used for Qualified Medical Expenses
(Reported on Form 8889, Line 15)
Enter distributions used to pay qualified medical expenses that:
- Were not reimbursed by insurance or another source, and
- Were incurred after the HSA was established.
Qualified expenses may include those for:
- You
- Your spouse
- Your dependents
- Certain individuals who could have been your dependent except for specific dependency rule exceptions
Important: If you leave this field blank, the program will treat the entire distribution as taxable.
Rollovers and Withdrawn Excess Contributions
(Reported on Form 8889, Line 14b)
Enter:
- HSA distributions rolled into another HSA within the allowed time period.
- Excess contributions withdrawn by the tax return due date, including extensions.
- Earnings associated with withdrawn excess contributions.
Exceptions to the Additional 20% Tax
Amount to Exclude
(Reported on Form 8889, Line 17a)
Normally, nonqualified HSA distributions are subject to an additional 20% tax.
The additional tax does not apply if the distribution occurred after:
- The account holder's death,
- The account holder became disabled, or
- The account holder reached age 65.
If one of these exceptions applies, enter the amount eligible for exclusion.
HSA Adjustments
Did Your Coverage Change During the Year?
If you changed between self-only and family HDHP coverage during the year and were otherwise eligible all year, an adjustment may be required.
Use the worksheet in the Form 8889 instructions to determine the correct contribution limitation amount and enter the adjustment if applicable.
This entry adjusts Form 8889, Line 3.
Separate HSAs With Family Coverage
If you and your spouse both:
- Had separate HSAs, and
- Had family HDHP coverage during the year,
you may need to allocate the maximum contribution limit between the two accounts.
This adjustment affects Form 8889, Line 6.
Age 55 Catch-Up Contributions
If you were age 55 or older at the end of the tax year and:
- Had qualifying HDHP coverage, and
- Were not enrolled in Medicare,
you may qualify for an additional catch-up contribution.
Use the Additional Contribution Amount Worksheet in the Form 8889 instructions to determine the amount to enter. This amount is reported on Line 7 of Form 8889.