Enter on line 17b, 20% of the amount of these distributions included on line 16. Enter the total distributions you received in 2022 from all HSAs. Your total distributions include amounts paid with a debit card that restricts payments to health care and amounts withdrawn by other individuals that ttps://turbo-tax.org/ you have designated. These amounts should be shown in box 1 of Form 1099-SA. If you or someone on your behalf contributed more to your HSA than is allowable, you may have to pay an additional tax on the excess contributions. Figure the excess contributions using the following instructions.

She gets the tax advantages of the HSA while paying off debt. If you’re either self-employed or you made contributions outside of payroll deductions, then you’ll need to account for those HSA contributions separately. You can almost always find information about these from an annual statement from the company that houses your HSAs. If you’re young, healthy, and not hoping to give birth anytime soon, one of the best ways to save money is to go on a high-deductible health insurance plan with a Health Savings Account . The IRS has released the 2021 version of Form 8889 (Health Savings Accounts ) and its instructions.

Which forms do I need to file my taxes?

When filing your taxes before Tax Day, regularly April 15th of the following year, you must complete an IRS Form 8889. Use your IRS Form 1099-SA to help you fill in information on the IRS from 8889. The major change to the 2020 Form 8889 is that the IRS has gone “green” and reduced the form to 1 page.

• Neither Optum Financial, Inc. nor ConnectYourCare, LLC is a bank or an FDIC insured institution.
• You won’t need receipts from HSA purchases to file your taxes, but the IRS does require you to keep them for seven years in case you are audited.
• HSAs are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties.
• If, on the first day of the last month of your tax year , you had family coverage, check the “family” box.

When filing taxes online or with software, you can probably import the information directly into your 1040 file. Otherwise, it only takes a few minutes to type in the data. You can find instructions for Form 1099-SA on the IRS website.

HSA Tax Documents: What do they mean?

Contributions – Line 2 contains the amount you contribute directly to your HSA. It’s only for contributions that DO NOT come from PRE-TAX payroll deductions. Line 9 should be the total contributions that were taken directly out of your paycheck. If you have an HSA, you need to include information from two IRS forms –Form 1099-SA and Form 8889– on your 1040 tax form.

Most state programs available in January; software release dates vary by state. State e-File for business returns only available in CA, CT, MI, NY, VA, WI. If you had 8889-t tax form any contributions that apply to 2022, you’ll also get tax form 5498-SA. Once you enter all the information into Form 8889, you’ll see your deduction in line 13.