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NicciJ
New Member

I have a MSA that I only use for medical expenses. I did not receive a 1099-SA form and I won't because I only use the $ for medical expenses. Do I report it still?

 
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I have a MSA that I only use for medical expenses. I did not receive a 1099-SA form and I won't because I only use the $ for medical expenses. Do I report it still?

Yes, of course you do.

First, the IRS instructions in Publication 969 state: "A distribution is money you get from your Archer MSA. The trustee will report any distribution to you and the IRS on Form 1099-SA[emphasis mine], Distributions From an HSA, Archer MSA, or Medicare Advantage MSA." (page 13 at https://www.irs.gov/pub/irs-pdf/p969.pdf).

So, your plan trustee must give you a 1099-SA, if you had a distribution (used the money) in 2017.

Second, the IRS instructions in Publication 969 state: "If you use a distribution from your Archer MSA for qualified medical expenses, you don’t pay tax on the distribution but you have to report the distribution on Form 8853[emphasis mine]. Follow the instructions for the form and file it with your Form 1040 or Form 1040NR." (page 14 at the link above).

So you will use the 1099-SA that you get to enter into TurboTax so that it will generate the form 8853.

Please contact your MSA trustee and show them the IRS instructions and ask that they send you the 1099-SA.

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