Instructions for Completing Part I of Form 8889 for 2012

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. Unfortunately, the IRS provided instructions for completing Form 8889 are often complex and unclear, but as industry experts BASIC has you covered.

The purpose of the form 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

Part I allows you to  figure your HSA deduction, any excess contributions you made and/or any excess contributions made by an employer.

View simplified instructions for completing Part I of Form 8889 for 25 typical situations

To view the actual Form 8889 itself, or the IRS provided instructions select the following links:

Form 8889

IRS Instructions for Form 8889