If you are a beneficiary of a Health Savings Account (HSA), then the IRS requires you to prepare Form 8889 with your tax return before you can deduct your contributions to the account. The purpose of the form is to report your deductible contributions, calculate the deduction, report the distributions you take to pay medical expenses and to calculate the tax you must pay on withdrawals you make for non-medical related purposes.
The purpose of the HSA form 8889 is to:
- Report your deductible contributions
- Calculate the deduction
- Report the distributions/withdrawals you made to pay medical expenses
- Calculate the tax you must pay on the withdrawals you made for non-medical related purposes
IRS Form 8889 and instructions:
BASIC HSA pairs with any carrier high deductible health plan (HDHP) – no need to ever change HSA Trustees! We offer no-cost debit cards, compliance expertise, and a full-service web portal to make things easy. If your company is looking for a cost-effective way to provide a richer benefits package to its employees, BASIC HSA is a no-brainer.