HealthEquity blog


Get prepared for tax time

TaxForms

Tax season doesn’t have to be panic-inducing. This year you can turn tax crunch time into a stress-free zone by gathering the health savings account (HSA) forms and statements you need in advance. Whether you have questions about HSA payroll deductions or contributions, you can always visit our HSA tax center to find information on key forms. Here we’ll cover two frequently used forms— file form 5498-SA and IRS form 8889.

 

Your HSA tax forms

You already know an HSA can provide you with multiple tax savings and advantages.1 And you know we’re here to support you when you have questions about the ins and outs of your HSA. That support continues during tax season. You’ll get the help you need with the tax forms and other important information you need to have a seamless tax filing.

We’ll send your HSA tax forms in your preferred format—through mail, email, and online. Visit the Statements and Tax Forms page in your profile to access them at any time. For HRA, FSA, or Commuter Benefits, you do not need to report these on your tax return and you will not receive any tax documentation through HealthEquity.

 

Form 5498 to report contributions to an HSA (informational only)

 

Form 5498-SA reports regular and rollover contributions on health savings accounts (HSAs), Archer Medical Savings Accounts (MSAs), and Medicare Advantage MSAs (MA MSAs) as well as the fair market value of an HSA, Archer MSA, or MA MSA at the end of the calendar year. Form 5498-SA is for informational purposes only; you should not file it with your tax return.

The W-2 you receive from your employer in January should match Form 5498-SA unless you made contributions outside of your employer or between January 1, 2022, and April 15, 2022, for the 2021 tax year. Note: After-tax contributions will not appear on your W-2, but will be reflected on Form 5498-SA. When it comes to reporting on and filing with after-tax contributions, the best resources available for understanding your total contributions for a given tax year are either your transaction history or the HealthEquity Year-End Statement, available on the Account Statements page in the HealthEquity member portal.

 

Form 8889 to report your HSA contributions and distributions

File Form 8889 with your tax return to report your HSA contributions and distributions. Completing Form 8889 requires information from your 1099-SA and information from your W-2. Some of this information includes annual distributions and pre-tax contributions made by you or your employer. Your annual and/or monthly statements from HealthEquity will note contributions outside of pre-tax contributions through your employer and are available through your member portal. Your year-end statement will include all contribution types with a line, “by your employer or by you via salary reduction” that ties to your W2 in box 12 code W.


Contribution questions

Reference our frequently asked question information if you have specific questions on contribution limits. Note that if you contributed more than the contribution limit, you may be subject to a 6% IRS excise tax penalty and added tax liability. To avoid penalties and added taxes, submit an HSA Excess Contribution Removal Form (available on the HealthEquity member portal under ‘Docs & Forms’) to HealthEquity before you file your return.

 

Plans for a less taxing tax season

Planning ahead is a good recipe for a smoother tax filing process. In the months leading up to tax season you can begin to collect your documentation and clarify any confusing areas. Reference FAQs at the bottom of our HSA tax center page. The help center is also a good source for helpful guides and answers to common questions. Additional forms you may need are available in the documents and forms section. And, you can always access The Complete HSA Guidebook to help you make informed decisions and take control of your health and wealth.

 

1HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.

HealthEquity does not provide legal, tax or financial advice. Always consult a professional when making life-changing decisions. 

Topics: HSA questions, HSA record keeping, Form 8889, Form 5498

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