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Form 1099-SA is filed by providers of HSAs or MSAs, including Archer and Medicare MSAs. These forms are sent to individual account holders and the IRS. Like other 1099 forms, the issuing entity should send it to the taxpayer by the end of January each year. We provide templates for everything from job postings to offer letters.
The total amounts you report should match the amount shown in Box 1. However, New Hampshire and Tennessee tax HSA earnings (interest and dividends) if you make a taxable withdrawal from your account. Consult your financial advisor or state department of revenue for more information. Form 5498-SA shows the amount of money contributed to your HSA for the tax year.
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If you contribute in the new year for the previous tax year, you will also get another 5498-SA form in May. A. IRS Form 1099-SA is typically available at the end of January. Another tax tip, make sure you understand the HSA rules where you live. Certain states have special rules regarding HSA’s so it’s a good idea to touch base with a tax adviser to ensure you’re flying your taxes correctly.
Work flow makes sense, navigation is easy, customer service is excellent with prompt call backs and thoughtful support. Very easy to find my way around, most help features are very good, customer service response has been exceptional for the price point. Choose to distribute your recipient copies using our postal mail and online access options. Please refer to your Client Welcome email for the URL of your specific COBRA/Direct Bill Employer login page. Enter the distributions1 shown in Box 1 of https://turbo-tax.org/form-1099-sa/ on Line 14a of Form 8889.
What else do I need to know about IRS Form 1099-SA?
Please contact your plan administrator with questions about enrollment or plan restrictions. If you’re 65 or older or enrolled in Medicare, you can use your HSA for nonmedical expenses without incurring a tax penalty. Those distributions will be treated like retirement income and will be subject to normal income tax. It’s up to you to maintain records to verify that funds were used for qualified medical expenses. Funds used for nonqualified expenses will be taxed as income and subject to a 20% penalty. Please contact a legal or tax professional for advice on eligibility, tax treatment and restrictions.
- The total amounts you report should match the amount shown in Box 1.
- You do not need to enter the information on your tax forms.
- After age 65, you are allowed to withdraw from your account penalty-free for non-eligible expenses, as long as you report it as income on your taxes.
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- Report the amount on your tax return for the year the account owner died, even if you received the distribution from the account in a later year.
Makes available The HSA for Life® Health Savings Account as a
custodian only. The HSA for Life is intended to qualify as a Health Savings Account (HSA) as set forth in Internal Revenue Code section 223. However, the account beneficiary establishing the HSA is solely responsible for ensuring satisfaction of eligibility requirements set forth in IRC sec 223. If an individual/employee establishes a HSA and s/he is not otherwise eligible, s/he will be subject to adverse tax consequences.
Where can I find my state tax information?
If you’re filing HSA tax information for the first time, you may ask, “What is the 1099-SA form, and where do I get it? ” Fortunately, all of these forms are relatively simple, and we have the answers to your questions below. If you get a distribution code No. 5 in box 3 of a 1099-SA, it means you did not use all distributions from your account for qualified medical expenses. That means you must report at least some of the distribution as income on your tax return. All interest earned is tax-deferred, and withdrawals for eligible medical expenses are tax-free. To receive this tax-advantage we provide you with the necessary tax documents.
Send links to docs and tax forms via text message so new hires sign digital copies. The funds from an HSA or MSA should only be for medical expenses. If they are used for non-medical purposes, they will not be deemed eligible to be tax-free.
While those expenses may, in fact, be medical in nature, they may not be covered due to specific coverage exclusions. Be sure to check the allowed/disallowed list to use HSA funds appropriately. Funds used on ineligible expenses may incur an income tax penalty. If you can’t file your federal tax return by the deadline, https://turbo-tax.org/ you can request an automatic six-month extension. However, you will need to file IRS Form 4868 before the tax-filing deadline. Keep in mind that if you owe taxes, you should go ahead and pay them by the deadline, or interest will be added to the unpaid tax amount until you file and pay your tax bill.
HealthEquity will send you a Form 1099-SA if you had any distributions from your HSA in 2022. Added all up and it’s more money for you and less for Uncle Sam. Workest is here to empower small business with news, information, trends, and community.
Are HSA contributions taxable?
Please consult with qualified professionals to discuss your situation. This site may contain links to third-party content, which may be articles, videos, or calculators, regarding health plans only as a convenience. Some articles, videos and calculators may have been written and produced by third parties not affiliated with Bank of America or any of its affiliates. Form 1099-SA is for reporting distributions from various health and medical savings accounts.