Is IRS form 8889 required?

You must always file a Form 8889 in any year you or an employer contributes money to your HSA or you make withdrawals from the account. The deduction you calculate on Form 8889 is taken on the first page of your income tax return.

What Is a IRS form 8889?

File Form 8889 to: Report health savings account (HSA) contributions (including those made on your behalf and employer contributions). Figure your HSA deduction. Report distributions from HSAs. Figure amounts you must include in income and additional tax you may owe if you fail to be an eligible individual.

Where do I get my 8889 S form?

IRS Form 8889 can be downloaded from IRS.gov at any time. IRS Form 5498-SA is typically available around the end of January.

Do I need to file form 8853?

If you (or your spouse, if filing jointly) received distributions from a Medicare Advantage MSA in 2021, you must file Form 8853 with a Form 1040, 1040-SR, or 1040-NR even if you have no taxable income or any other reason for filing Form 1040, 1040-SR, or 1040-NR.

How do I deduct HSA contributions on 1040?

The form has a line for reporting your direct contributions to your HSA, and you’ll carry that deduction to line 25 of your Form 1040. The form also has a line to report employer contributions, which you’ll fill in if you made pretax contributions via payroll deduction or if your company contributed to your account.

Can you deduct HSA expenses on taxes?

The IRS won’t let you deduct medical expenses paid with HSA or MSA funds. Those funds are already tax-free and deducting them as medical expenses would be double-dipping.

What is a 8853 form?

More In Forms and Instructions Use Form 8853 to: Report Archer MSA contributions (including employer contributions. Figure your Archer MSA deduction. Report distributions from Archer MSAs or Medicare Advantage MSAs. Report taxable payments from long-term care (LTC) insurance contracts.

What is the 8853 form used for?

Form 8853 reports contributions and payments from Archer MSAs and payments from long-term care insurance contracts.

Are HSA contributions reported to IRS?

You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you don’t itemize your deductions on Schedule A (Form 1040). Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded from your gross income.

What are qualified HSA expenses?

Eligible expenses are reasonable medical expenses not reimbursed by any government sponsored or private health care plan. Eligible expenses can also include expenses incurred outside your province of residence, deductibles, co-payments, and amounts above plan maximums.

What is a qualified medical expense for HSA?

A medicine or drug will be a qualified medical expense for HSA purposes only if the medicine or drug: Requires a prescription, Is available without a prescription (an over-the-counter medicine or drug) and you get a prescription for it, or Is insulin.

How do I report my HSA deduction on my taxes?

You should receive Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, from the trustee showing the amount contributed to your HSA during the year. Your employer’s contributions will also be shown on Form W-2, box 12, code W. Follow the Instructions for Form 8889. Report your HSA deduction on Form 1040, 1040-SR, or 1040-NR.

Are you eligible for a qualified HSA funding distribution?

Each qualified HSA funding distribution allowed has its own testing period. For example, you are an eligible individual, age 45, with self-only HDHP coverage. On June 18, 2020, you make a qualified HSA funding distribution. On July 27, 2020, you enroll in family HDHP coverage and on August 17, 2020, you make a qualified HSA funding distribution.

Does the testing period apply to qualified HSA funding?

The testing period rule that applies under the last-month rule (discussed earlier) doesn’t apply to amounts contributed to an HSA through a qualified HSA funding distribution.