Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Showing results for 
Search instead for 
Did you mean: 
New Member

My 1099sa is done but you say I need a 8899 which we do not get

1 Reply
Level 13

My 1099sa is done but you say I need a 8899 which we do not get

No, you don’t enter an 8889, we generate one based on your answers in the interview for “HSA MSA Contributions” under Medical under Deductions & Credits.

You probably have an HSA, and the 1099-SA shows the amount of money that was distributed out of the HSA, presumably to go to paying qualified medical expenses. But since the IRS assumes that unless you complete form 8889 (i.e., answer all the questions under “HSA MSA Contributions”) that you spent that money on non-qualifying expenses, you will be penalized by having to report the amount on the 1099-SA as income.

This is presumably not what you want.

So, this is how it works:

  1. Either you received a 5498-SA to report how much money was contributed to the HSA, or you have a code W in box 12 on your W-2 (or both). The amount next to the W is the amount that you (through a section 125 cafeteria plan) and your employer contributed to the HSA.
  2. You also receive a 1099-SA from the bank or financial institution that administers your HSA, which states how much money you took out from the HSA, generally by using the debit card for medical expenses that they gave you.

For your part, you need to complete the entire interview for the HSA that I referred to above, so that you properly report the money contributed to the HSA (which should be tax-free), and how the money “distributed” (i.e. “spent”) from the HSA was spent (presumably on qualified medical expenses).

Once you complete the questions, the 8889 will be correctly generated, and you will get your tax break.

The following screen shot is what you should see to enter the HSA interview (under Deductions & Credits).

Dynamic AdsDynamic Ads
Privacy Settings