Rev. 2023
Form 8889 is used to report contributions made to Health Savings Accounts (HSAs) for tax purposes. It also includes a section for reporting distributions from HSAs and any additional tax that may be owed due to failure to maintain a qualifying High Deductible Health Plan (HDHP).
The additional 20% tax on HSA distributions applies if you took a distribution from your HSA for reasons other than qualified medical expenses before age 65 or after death, and did not meet one of the exceptions.
A qualified medical expense for HSA purposes is any medical care expense that is not reimbursed by insurance or other coverage and is allowed as a deduction under IRS rules for medical and dental expenses.
A qualified HSA funding distribution is a distribution from an HSA that is used to pay for healthcare costs for yourself or your family members that were incurred before the distribution was taken, but were not reimbursed by insurance or other coverage.
The last-month rule states that if you are eligible to participate in an HSA on the first day of the last month of your tax year, you can make contributions to the HSA for the entire tax year.
You need to file Form 8889 if you had an HSA during the tax year and made contributions or received distributions from it.
Form 8889 is used to report contributions, distributions, and other transactions related to a Health Savings Account (HSA) to the IRS.
Part III of Form 8889 is used to report any additional income and adjustments to income, as well as additional taxes that may apply if you did not maintain HDHP coverage during the testing period for the last-month rule or a qualified HSA funding distribution.
Form 8889 is one of Tax forms that are documents used to report information related to taxes to the relevant tax authority. There are various types of tax forms, including federal, state, and local tax forms, which can vary depending on the taxpayer's circumstances and location.
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