The IRS requires you to prepare Form 8889 and attach it to your tax return when you take a distribution from an HSA. However, if your 1099-SA indicates you did not use the distribution for qualified medical expenses, you will pay income tax on the portion you used for unqualified expenses.

Does Form 5498-SA need to be reported?

Am I required to report information contained in Form 5498-SA on my federal tax return? No. Report all contributions (employee, employer, and other third-party contributions) to your Fidelity HSA on IRS Form 8889, “Health Savings Accounts (HSAs),” and file it with your IRS Form 1040.

How do I get my 1099-SA?

IRS Form 1099-SA is typically available at the end of January. It will be posted to your account and mailed, if elected. IRS Form 8889 can be downloaded from IRS.gov at any time. IRS Form 5498-SA is typically available around the end of January.

What do you need to know about form 1099-sa?

Form 1099-SA is the IRS form that you receive if you must include a distribution from certain medical savings accounts on your federal taxes. LinkedIn with Background Education

What’s the difference between a 1099-sa and an 8889?

Form 1099-SA functions as a control mechanism to track the funds that have left an employee’s health savings account, while Form 8889 is a verification mechanism to ensure that the health savings account monies were spent in accordance with the allowances.

What is the box 5 on 1099-sa?

Box 5: This is a checkbox that details whether the account is a health savings account, MA MSA, or Archer MSA; the box will detail the type of account from which a distribution was made in the tax year. The information populated on Form 1099-SA will form the basis of the information needed to be entered on Form 8889.

Can a health savings account be used for a 1099?

An individual may use a health savings account to make distributions without taxation if those funds are used for allowable medical expenses. The individual will receive Form 1099-SA to reflect the exact amount of distributions received from the health savings account in the given tax year.