Informational Purposes Only
The following content has been prepared for informational purposes only, and should not be relied on for tax, legal, or accounting advice. Consult with a tax professional for your own reporting purposes.
Filing taxes with an HSA doesn't have to be complicated, once you know what to expect. This guide walks you through the three tax advantages your HSA offers, the forms you'll need, and where to go for more detail on your specific state's rules.
Health savings accounts offer three main federal tax advantages:
Contributions are tax-free. You can contribute pre-tax via payroll, or contribute post-tax and claim your contribution as a tax deduction.
Withdrawals for qualified medical expenses are tax-free.
Growth is tax-free. You're not taxed on interest or investment growth within your HSA.
Important terms
Contributions: any amount funded to your HSA, whether by you, your employer, a parent, or otherwise
Distribution: any amount withdrawn from your HSA (e.g., using your debit card to pay for a qualified medical expense)
Form 8889: the form you'll submit
If you contributed to or used HSA funds during the past tax year, the IRS requires you to prepare Form 8889 with your tax return. This form:
Reports HSA contributions, including those made on your behalf or by your employer
Figures your HSA deduction
Reports distributions from your HSA
Figures any amounts you must include in income, and any additional tax you may owe if you weren't an eligible individual, including the 20% penalty on non-qualified distributions, unless you're 65 or older, or disabled. (See "IRS penalties for unsubstantiated or non-qualified expenses.")
You can get this form from the IRS website, your tax advisor, or your tax software.
The forms we provide
We give you copies of the two tax forms we submit to the IRS: 1099-SA and 5498-SA. You (or your tax professional) can use these to complete your taxes.
1099-SA reports your distributions (withdrawals). (See "Understanding your 1099-SA.")
5498-SA reports your contributions. (See "Understanding your 5498-SA.")
No forms this year?
No 1099-SA? You didn't use your HSA funds during the tax year, there's nothing to report.
No 5498-SA? You didn't contribute to your HSA during the tax year.
Contribution deadlines
You have until April 15 to contribute to your HSA for the prior tax year. A few exceptions:
Tax extensions don't count. Filing for a tax extension doesn't extend your HSA contribution deadline.
Maine and Massachusetts: the deadline is April 17, due to the Patriots' Day holiday in those states.
Combat zone service: if you were serving in, or in support of, the U.S. Armed Forces in a designated combat zone or contingency operation, you may be able to file later.
State taxes
Your state may tax HSA contributions or growth differently than the federal government does. See "State taxes for HSAs" for details.