HSA Form 8889: How to File for Tax Deductions | [Year]

Contributing to a Health Savings Account, or HSA, allows you to budget for the high cost of health care, while getting a tax deduction at the same time. The idea behind HSAs is that consumers will make smarter health care spending choices when they work with their own money, and those smarter choices can eventually lower the cost for everyone. If you do choose to open an HSA, you need to file Form 8889 with the IRS in order to claim the available tax deduction.

Things You'll Need

• Form 8889
• 1040 form

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Instructions

• 1

  Download a copy of form 8889 from the IRS website. Check the box at the top indicating whether your high deductible health plan is an individual plan or a family plan. You must have a high deductible health plan already in place before you can contribute to an HSA.

• 2

  Enter the amount you contributed to the HSA on line 2 of Form 8889. Enter any amounts your employer contributed to your HSA on line 9.

• 3

  Report any distributions from your HSA plan on line 10, then enter your total HSA deduction on line 13. Transfer the amount on line 13 of Form 8889 to line 25 of your 1040 form.