Do contributions to a Health Savings Account (HSA) need to be reported when filing taxes?

Forum|Forum|3 years ago
March 18, 2023
1 reply
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Every year I max out my contributions to my Health Savings Account (HSA). For 2022, my total contributions were $3,649.98. I was not aware that when filing taxes that contributions to a HSA needed to be reported to the IRS. I also did not know deductions from a HSA for medical related expenses also needed to be reported to the IRS. Apparently, Tax Form 8889 should be filed for theses sorts of transactions. I will make sure to complete Tax Form 8889 going forward. However, in the years I did not do this, what are the consequences? Were my contributions not considered tax free?

DawnC

Level 15

If you made the contributions through an employer (most people do), those contributions were reported in Box 12 with a Code W. As long as you entered those amounts when you prepared your taxes, TurboTax will automatically include those amounts on Form 8889 and generate the applicable tax credit. For the distributions - and as long as the distributions were used for qualified medical expenses, the amounts are not taxable anyway. You get form 1099-SA for distributions which you will enter into TurboTax.

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ta_nycAuthor

Level 2

Thank you. What is a 1099-SA? How do I secure a copy of a 1099-SA? Who is sending this to me and by when should I receive it by? In 2022, I used contributions from my HSA to fund medical expenses of $377.55. I saved all my receipts. How do I report this distribution if I have not received a 1099-SA?

MarilynG

Level 15

You should a Form 1099-SA from your HSA Plan Administrator when distributions are made from your plan for Medical Expenses.

In the HSA section in TurboTax, you can enter the amount of Medical Expenses you paid with an HSA Distribution (even if you didn't receive a 1099-SA).

As mentioned above, it is not a taxable event in either case; it is just reporting. Continue saving your receipts.

Here's more detailed info on HSA's.

@ta_nyc

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