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Reporting Your HSA Information on Income Taxes

March 14, 2013 02:42 AM

Woman filing taxesBecause American Fidelity provides Health Savings Accounts (HSAs) to both our Customers and our Colleagues, we wanted to share some information about how to report HSA contributions and distributions on your taxes. We know it can be a little confusing, so hopefully this helps.

Here’s what you need to know if you are an HSA account owner:

All employers are required to report HSA contributions (both employee payroll deductions and employer contributions) on the W-2, box 12, coded with W. 

All custodians of HSAs are required to report to the IRS a 1099-SA (all distributions from an HSA) and 5498-SA (all contributions to an HSA). A copy of each of the forms is required to be mailed to the account owner as follows:

  • 1099-SA is required to be mailed no later than January 31.
  • 5498-SA is required to be mailed no later than May 31.
    •  The reason for May 31 is that account owners have until April 15 to make contributions to their HSA for the previous tax year.
    • American Fidelity mailed these between the last week of February and the first week of March. If an account owner makes an additional contribution after the 5498-SA is mailed, an updated one will be mailed by May 31.
    • If you wish to file your taxes before you receive the 5498-SA, you can determine your contributions by:
      • Using your W-2 if all of your contributions have been contributed via pre-tax payroll; or
      • Accessing your account on-line and downloading information regarding your contributions for the year.

Both of these forms are for reporting purposes only. The forms are not to be attached to your federal income tax return and it is so stated on the forms.

Also, you must file Form 8889 with your federal tax return if any of the following applies:

  • You (or someone on your behalf, including your employer) made contributions for 2012 to your HSA.
  • You took HSA distributions in 2012.
  • You must include certain amounts in income because you failed to be an HSA-eligible individual during the applicable testing period.
  • You acquired an interest in an HSA because of the death of the account beneficiary.

Specific instructions and definitions can be found on the Internal Revenue Service website.

If you have already filed your income tax return and need to make a change or if you have additional questions, please contact a tax professional or the IRS.

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