HSA Tax Information

Each year, two tax forms will be sent to the employee/taxpayer, and to the IRS. The first is Form 1099-SA. This form is sent no later than January 31. Form 1099-SA tells you what distributions (withdrawals) have been made from the health savings account during the calendar year. The amount in Box 1 of your 1099-SA should be reported on Form 8889, a worksheet that goes with the Form 1040.

The second form is Form 5498-SA. This form is sent out no later than May 31, but definitely after the tax filing deadline of April 15. Form 5498-SA cannot be sent any earlier because taxpayers have until April 15 to make contributions to the prior year's HSA. This form included ALL contributions made between January 1 of the reportable tax year (e.g. 2010) and April 15 of the following tax year (e.g. 2011). Box 1 will be blank unless you have an MSA. Box 2 will have all the contributions to your HSA made in calendar year 2010, including any contributions made in 2010 for tax year 2009 . Do not report this on your Form 8889. Box 3 has the HSA contributions made in 2011 for 2010. Note that both boxes 2 and 3 may, or may not, match the amount reported on line 2 of Form 8889.

There is nothing the employee needs to do with the 5498-SA. It is an informational form and is not used in preparing the employees' tax returns. If someone believes there is an error, they should contact their Health Savings Administrator to get clarification or have a correction made.