Pub 4012: Health Saving Accounts (HSAs) Helpful Hints

posted Dec 3, 2012, 4:24 PM by Wayne Culp   [ updated Dec 3, 2012, 4:24 PM by Wayne Culp ]
excerpt from Pub 4012, page E-1 (2011) ... use it for tax prep for an HSA.

How can I tell if the taxpayer has an HSA issue?
  • The Intake/Interview sheet has the Yes or Unsure box checked (Life Events –Question #1)
  • The taxpayer’s (or spouse’s) Form W-2 has a box 12 entry of code W for employer contributions. This triggers a Form 8889 to be added to the forms tree in the tax software. [Caution – If the taxpayer elected to contribute to the HSA through a section 125 (cafeteria) plan, this amount will be included in the box 12 entry. They are treated as employer contributions and are not deductible.]
  • The taxpayer (or spouse) has a Form 1099-SA with an X in box 5 showing distributions from an HSA.
  • The taxpayer (or spouse) may receive Form 5498-SA for their HSA contributions. If taxpayers do not have this form they can provide the information regarding HSA contributions based on their records.

TaxWise Tip: Link to the Form 8889 from Form 1040, line 25.