Who needs to fill out 8889?
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 happens if you forget to file form 8889?
If you do not Amend and file Form 8889, the IRS will deem all of the HSA Distributions as non-qualified and will add them to your Taxable Income.
Do you have to report your HSA on taxes?
Tax reporting is required if you have a Health Savings Account (HSA). You may be required to complete IRS Form 8889. HSA Bank provides you with the information and resources to assist you in completing IRS Form 8889 regarding your HSA.
Do I need to report employer contributions to HSA?
The employer is required to report employer HSA contributions to the IRS on the tax return that is filed by the employer. Employer HSA contributions, including employee pretax contributions through a cafeteria plan, are also reported on the W-2 (Box 12, code W) for each employee.
Do I need a tax form for my HSA?
The 1099-SA is used to report any distribution (withdrawal) of funds from your HSA during the prior year. You must report distributions from your HSA on IRS Form 8889. There’s a sample 1099-SA form from the IRS here. The HSA Bank 1099-SA form may look slightly different, but it will contain the same information.
Do I have to claim HSA distributions?
HSA distributions and taxes Although a qualified HSA distribution is not taxable, you still must file IRS Form 8889 to report any distributions made during the year.
How do I claim my HSA deduction?
How to claim the HSA tax deduction. Tax-deductible HSA contributions should be reported on Form 8889 and filed with your Form 1040 or Form 1040NR. If you or your employer have made contributions to your HSA plan in 2020, make sure you reap the benefits on your tax return when you file.
How do I use form 8889?
Use Form 8889 to: 1 Report health savings account (HSA) contributions (including those made on your behalf and employer contributions), 2 Figure your HSA deduction, 3 Report distributions from HSAs, and 4 Figure amounts you must include in income and additional tax you may owe if you fail to be an eligible individual.
How do I enter the Medicare limitation amount on form 8889?
After calculating the amount for each month in 2020, enter the amount on the line for that month in the worksheet, add them all together and divide by 12 to receive the limitation amount to be entered on line 3 of Form 8889. This is the starting of the flowchart. Were you enrolled in Medicare for the month? Enter 0 on the line below for the month.
Who must file form 8889 if a beneficiary dies?
Who Must File. See Death of Account Beneficiary, later. If you (or your spouse, if filing jointly) received HSA distributions in 2017, you must file Form 8889 with Form 1040 or Form 1040NR even if you have no taxable income or any other reason for filing Form 1040 or Form 1040NR.
