Learn about our Form 8889 tax software

But to reap those tax benefits, you need to let the IRS know how much went into your HSA for the tax year, along with how much you took out and what you used it for. Of course, the offers on our platform don’t represent all financial products out there, but our goal is to show you as many great options as we can. But even if you use software, it’s important to understand the form. Personally, I always head to my HSA website at tax time to download any tax documents that are available. To learn how much your employer contributed on your behalf, and how much you contributed, you will look at your W-2 form .

Here are some of the reasons you may need to complete and file a Form 8889. This article was fact-checked by our editors and a member of the Credit Karma product specialist team, led by Senior Manager of Operations Christina Taylor. For this and for your own personal online safety reasons, please upgrade to the latest Firefox or Internet Explorer for Windows.

What tax years does EasyForm8889.com support?

They also note that an HDHP may cover COVID-19 testing and treatment before satisfying the applicable minimum deductible . Whether you’re in the first camp or the second camp, you need to save your medical receipts. The first group will use the medical receipts during tax season to prove they used the funds for qualified medical expenses. The second group needs to hang onto the receipts even longer, until they actually take a distribution from the HSA. Years or even decades from now, those receipts could keep you from paying extra taxes on HSA distributions.

Tax benefits may also be affected by failure to comply with eligibility and withdrawal requirements. Refer specific questions about federal and state tax ramifications, as they relate to a particular circumstance, to your tax advisor each year. HSA information in this guide is not intended as legal or tax advice. This webinar will help you understand which forms you’ll need to file with your taxes and how your state treats HSA contributions. A. Each state can decide to follow the federal tax guidelines for HSAs or establish its own.

EasyForm8889.com is an online tax preparation software for Health Savings Account (HSA) Form

Line 8 is simple subtraction, and the $550 employer contribution comes into play on Line 9. If you contributed to your HSA from an IRA you would indicate that on Line 10, and Line 11 is simple addition. Line 12 is subtraction, and Line 13 does a comparison to calculate what your 2020 HSA deduction is, which makes its way to Form 1040. You will notice this excludes employer contributions since we do not get an addition tax benefit for those, although that would be nice. The IRS pays close attention to all financial tools that enable tax-free contributions, so it’s important to file correctly. If you have questions about your forms, or about HSAs and filing your taxes, contact your employer’s HR department or your benefits administrator. If you need assistance with tax filing, contact a tax preparation specialist.

You can find Tax Form 8889 on the IRS website, as well as detailed instructions on how to complete it. Many of the line items are self-explanatory, but we’ll walk you through some of the things you need to be aware of. You can view the status of your claims and upload documentation easily with our benefits mobile app or through your online account. Specifically, you can use it anywhere with https://turbo-tax.org/ an Inventory Information Approval System or at merchants that meet the IRS’ 90 percent rule (where 90% of gross sales meet eligibility requirements). If an upcoming employer contribution will go over the limit, you must make every reasonable effort to notify your employer before the contribution is made. There is no restriction on when and how often you may request withdrawals from the HSA.

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After creating an account, you will select either the 2021, 2020, 2019, etc. tax year to begin a new project. This indicates the tax year 8889-t tax form for which you wish to generate Form 8889. Your account can contain multiple projects; for example, one for you and one for your spouse.