When tax season rolls around, you'll receive many forms that you must use to file your taxes correctly. While most people expect a W-2 from their employer, you may receive other documents based on your financial situation. One such form is 1099-SA.
You'll receive this form from your health savings account (HSA), Archer medical savings account (MSA) or Medicare Advantage MSA provider. Providers file this form with the IRS and send a copy to individual account holders. You'll then use it to file your taxes, including the information on the document to fill out Form 8853 or Form 8889. Reporting Distributions The purpose of Form 1099-SA is to report distributions from your HSA, Medicare Advantage MSA or Archer MSA. Having these types of accounts does not mean you'll receive the form. Providers are only obligated to send the document when they receive distributions during the tax year. If you don't, you won't get one. Generally, distributions are tax-free when you use them on qualified medical expenses. Any contributions you make are also tax-deductible. But it doesn't matter how you use distributions. If you take money out of these accounts in any way, you must use the 1099-SA to report it on your taxes. What Does the 1099-SA Include? This form includes all the necessary information to complete the appropriate forms and report distributions. You'll see the payer's information, including their tax identification number and address. The form will also have your information. The most important information is on the right side. It includes the amount you received as distributions. That figure reflects what you received directly, or anything paid to a medical provider. The document will also include any earnings made on excess contributions and a code to indicate the distributions you received. The 1099-SA form is not something you fill out. It's a document your account provider will submit to the IRS and send to you. You'll use it to complete IRS Form 8853 or Form 8889. It's also wise to keep a copy for your personal record-keeping. Read a similar article about HSA provider customer service here at this page.
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