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This article provides an overview of how to add distributions reported on Form 1099-SA to a tax return. |
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About Form 1099-SA
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Taxpayers should receive Form 1099-SA if they received any distributions from a Health Savings Account, Archer Medical Savings Account, or Medicare Advantage Medical Savings Account.
Inquire if the taxpayer used all distributions for medical purposes.
Distributions not used for medical purposes will be taxed on the taxpayer’s return.
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Information from here is reported on Form 8889
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on the tax return.
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Entering 1099-SA Distributions on the Tax Return
Form 8889 may already be on the tax return, if the taxpayer made contributions to their HSA, and code “W” is entered on their W-2. If Form 8889 is already on the return, skip to step 4.
Select Add Form.
Begin by typing 8889, into the search bar at the bottom of the All Forms and Schedules Menu.
- Select Form 8889.
Locate and highlight Form 8889 in the All Forms & Schedules Menu. Double-click to add the form.
If a joint return, choose New Taxpayer's or New Spouse's Occurrence.
Complete Line line 1a by indicating the coverage type as Self Only or Family. Complete Line 1b by entering the month coverage began.
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Complete lines 1b and 1c as needed.
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Enter the amount of distributions from the Form 1099-SA box 1 into Form 8889, line 14a (unless rolled over into another HSA).
Enter the amount of qualified medical expenses on Line 15.
line 15(this will not be on the form you will need to ask the taxpayer).
*Failure to enter qualified medical expenses will result in the distribution being taxable.
Need more help? Watch our quick video below...
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