Where to Find HSA Tax Forms and How to Use Them

Health Savings Accounts (HSAs) serve as tax-advantaged savings vehicles specifically designed for healthcare expenses. These accounts allow individuals to save and pay for qualified medical costs with pre-tax dollars, and the funds can grow tax-free over time. HSAs provide a financial tool for managing healthcare expenditures, offering a portable benefit that remains with the account holder even with changes in employment or health plans. Because HSAs offer various tax benefits, the Internal Revenue Service (IRS) requires proper reporting of all account activity, including contributions and distributions, on annual tax returns. This reporting ensures that individuals claim eligible deductions and adhere to the guidelines for tax-free withdrawals, making accurate tax document management a necessary aspect of HSA ownership.

Key HSA Tax Documents

Understanding the specific tax forms associated with Health Savings Accounts is an important part of managing these financial tools effectively. Three primary forms provide detailed information about HSA activity: Form 1099-SA, Form 5498-SA, and Form 8889. These documents serve distinct purposes in reporting contributions and distributions to the IRS.

Form 1099-SA is issued by the HSA administrator to report any money withdrawn from the account during the tax year. This form details the gross distribution amount in Box 1 and includes a distribution code in Box 3, indicating the type of withdrawal (e.g., normal distribution, excess contribution removal, death, disability, or prohibited transaction). Form 1099-SA information helps determine the taxable portion of any HSA distributions.

Form 5498-SA reports all contributions made to an HSA for the tax year. This includes direct contributions from the account holder, employer contributions, and any rollover contributions from another HSA or Medical Savings Account (MSA). Box 2 shows the total contributions, while Box 4 indicates rollover contributions. This form verifies the total amounts added to the HSA, which aids in calculating the allowable deduction.

Form 8889 is the central IRS form individuals use to report all HSA activity on their tax return. This form consolidates information from both Form 1099-SA and Form 5498-SA. It allows taxpayers to calculate their HSA deduction, report distributions, and determine any taxable income or penalties related to non-qualified withdrawals. Filing Form 8889 is a requirement if contributions were made to an HSA or distributions were received during the year.

Sources for Your HSA Tax Forms

Your HSA administrator is the primary source for accessing necessary tax forms. Financial institutions, such as banks, credit unions, or brokerage firms that manage HSAs, are responsible for issuing Form 1099-SA and Form 5498-SA. These forms are usually sent by mail or made available electronically through the administrator’s secure online portal. Form 1099-SA is available by late January. Form 5498-SA, detailing contributions, is provided later, by May 31st, to account for contributions made up to the tax filing deadline.

While employers may facilitate payroll deductions for HSA contributions, the official Form 5498-SA is still issued by the HSA administrator, not the employer. Employers report their contributions on your Form W-2, Box 12, with code W. For Form 8889, which is used to report HSA activity to the IRS, individuals can directly download it from the IRS website. Tax preparation software also generates this form based on the entered HSA information.

Reporting HSA Activity on Your Tax Return

Properly reporting Health Savings Account activity on your tax return primarily involves completing IRS Form 8889. This dedicated form serves as the comprehensive record of your HSA contributions, distributions, and any associated tax implications for the year. It must be filed with your Form 1040, Form 1040-SR, or Form 1040-NR, regardless of whether you have taxable income.

Part I of Form 8889 focuses on HSA contributions and deductions. You will transfer the total contributions reported on Form 5498-SA to the relevant lines on Form 8889. This section also accounts for employer contributions, found in Box 12 of your Form W-2 with code W, as these contributions count towards your annual limit. The form guides you in calculating your maximum allowable contribution, which for 2025 is $4,300 for self-only coverage and $8,550 for family coverage, with an additional $1,000 catch-up contribution for individuals aged 55 and older. The calculated deductible amount from Form 8889, Part I, then flows to Schedule 1 (Form 1040).

Part II of Form 8889 addresses HSA distributions. You will use the information from Form 1099-SA, specifically the gross distribution amount, to report withdrawals from your HSA. This section requires you to indicate the portion of distributions used for qualified medical expenses, which are tax-free. Qualified medical expenses are defined broadly by the IRS and include costs for diagnosis, cure, mitigation, treatment, or prevention of disease, such as doctor visits, prescriptions, and dental care. If any distributions were not used for qualified medical expenses, they become subject to income tax and a 20% additional penalty, unless an exception applies, such as being age 65 or older or disabled.

Part III of Form 8889 is used to report any additional taxes or amounts that must be included in income due to specific situations, such as failing to maintain High Deductible Health Plan (HDHP) coverage under the last-month rule. After completing Form 8889, the final figures, including any deductible contributions or taxable distributions, are transferred to the appropriate lines on your Form 1040. You do not submit Forms 1099-SA or 5498-SA directly with your tax return, but retain them with your tax records for documentation.