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Deductions & credits

Form 8889 is required any year that your contribute to or withdraw from a Health Savings Account (HSA).  This is because the IRS is checking that:

  • You have a qualifying High-Decuctible Health Plan (HDHP)
  • You and your employer have not contributed more than the maximum amount allowable during the year ($3,350 for an individual plan and $6,750 for a family plan; $1,000 additional may be contributed if you are 55 or older)
  • All distributions taken from the HSA were used for qualifying medical expenses.

Additionally, there may be a deduction available for any contributions that were not made on a pre-tax basis.