Reporting HSA Activity To The IRS
If you own an HSA, you’ll need to do some annual reporting to the IRS.
First, at the end of January, you’ll receive a Form 1099-SA from your HSA custodian; this form reports any money you took out of your HSA during the previous tax year. If you didn’t take any money out, you won’t get a form.
The IRS will ask you how much of the money on your 1099-SA was spent on eligible medical expenses. If you spent any HSA funds on non-eligible medical expenses, you’ll need to pay taxes on them and pay an additional 20% penalty on them if you’re under 65.
You’ll also receive a Form 5498-SA at the end of May/beginning of June, which reports contributions made to your HSA for the previous year. Form 5498-SA is sent at this time because you have until the tax filing deadline (in mid-April) to contribute for the previous year. If you don’t make any contributions, you won’t get a form.
As the accountholder, it’s your job to report contributions and withdrawals on Form 8889 when you file your income taxes (your HSA custodian is not responsible for this). You’ll want to keep track of your contributions each year, since your Form 5498-SA won’t come until after you file your taxes. Also, you should store your receipts for eligible medical expenses to prove they were eligible if you’re audited by the IRS.
Watch the 2-minute video below for more tax information for HSAs. You can also browse the “Resources” section for commonly-used IRS forms and additional tax guidance.
IRS Resources & Tax Guidance
COMMONLY USED FORMS
- Publication 502 – Medical and Dental Expenses
- IRS Publication 969 – Health Savings Accounts and Other Tax-Favored Health Plans
- Form 8889
- Form 8889 Instructions
- IRS Instructions for Forms 1099-SA and 5498-SA
ADDITIONAL TAX GUIDANCE & INFORMATION
- Form 5329
- Form 5329 Instructions
- Notice 2012-14: Health Savings Accounts
- Notice 2008-59: General HSA Guidance Q&A
- Notice 2008-52: Guidance on HSA Contributions
- Notice 2008-51: IRA Funds Transfer to HSA
- Notice 2005-86: HSA Eligibility During a Cafeteria Plan Grace Period
- Revenue Ruling 2005-25: HDHP Family Coverage
- Notice 2005-8: Tax Treatment Partnership and S-corp
- Announcement 2004-67: Correction of 2004-2 on Medicare Eligibility
- Notice 2004-50: Administrative, Procedural & Misc Q&A
- Revenue Ruling 2004-45: Relationship of HSAs, FSAs & HRAs
- Revenue Ruling 2004-38: Contribution Guidance for HSAs
- Notice 2004-23: Preventive Care Clarification
- Notice 2004-2: Department of Treasury Q&A
How Is Activity Reported?
Our custodial bank reports withdrawals on Form 1099-SA and contributions on Form 5498-SA. These forms are mailed to the account holder and the IRS. As the account holder, you are responsible for reporting contributions and withdrawals on Form 8889 when you file your annual income taxes. HealthSavings is not responsible for monitoring your contribution limits or withdrawals.
When Will I Receive Tax Forms?
- Form 1099-SA is mailed at the end of January.
- Form 5498-SA is mailed at the end of May.
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A health savings account (HSA) combines the immediate benefits of a flexible spending account with the retirement strategy of a 401(k) … and offers more tax advantages than either.