HSA contributions tax report

Last year was my first time in combination with high-deductible health plans with health savings accounts work. What do I need to report about the HSA when I submit my taxes?

When you file, you need to include Form 8889 to all contributions and withdrawals reported to HSA in 2013 in the form associated with the reports that you direct contribution to your HSA a line, you will carry the buckle to form line 25 of your form 1040 also has a line of reporting employer contributions, you will move through pre-tax payroll deduction contributions in you, or fill in your company’s contribution your account. This can be confusing, he pointed out that the founder Roy Ramthun, HSA Consulting Services, because the IRS believes that the employer is to pay two plug-ins. You will find the correct amount on your W-2 form (box 12, code W).

You should also report from your HSA administrator withdrawals from the account owners receive 1099-SA. You need these distributions in the table 8889 report, noting that it is a qualified medical expenses, which are not. Ineligible expenditure is taxed, you need to report their 1040 withdrawal form non-medical purposes (HSA money line 21 has also been a 20% penalty if you are younger than 65 years old; the punishment table 8889 and carried forward calculation table rows 60 to 1040) see table 8889 provides instructions for details. See IRS Publication 969, health savings accounts and other tax-favored health plan.

As qualified withdrawals are tax-free spending rose outline, at any age. Unlike flexible spending accounts, however, your HSA administrator no obligation to verify the eligibility of costs withdrawals. “All you know is that HSA trustee, which is a withdrawal, but you must be able to prove whether it is qualified or not,” Lee policymaking Fidelity Investments, responsible for managing the HSA exams for many employers vice president Jeff Moon said. So keep qualified medical expense receipts – deductibles, co-payments and expenses not reimbursed, such as dental and vision care to see – if you are audited (but when you submit your taxes do not submit receipts).

An interesting quirk HSA exams is that you can eitherWhat time withdrawals qualified medical expenses – No deadlINE use the money. For example, some people choose to pay their deductibles, co-payments and other out at their own expense savings from medical expenses, allowing them to keep more of the money to grow tax-free in the HSA. However, if you need to access some extra cash in case of emergency, you can always withdraw from the HSA, as long as the cost of recording the occurrence of a show that you have opened your account after date. “Once you open an account, any qualified medical expenses, you have a point after five years, whether it is 30 years later, you can repay yourself from the HSA tax-free and do,” Munn said. For tax purposes, you need to report to retreat made years.

For more information on health savings accounts, see Smart Health Policy Javier NGS account. See frequently asked questions about health savings accounts.