Now that tax season is upon us, we wanted to provide some helpful tips to make your tax filing season less stressful. Here are four tips about the Health Savings Account information that you’ll need when filing.
1. Confirm that your W-2 shows total HSA payroll contributions
Your employer provided W-2 will list the wages you earned and any taxes that were withheld. If you elected to have deduction’s taken out of your paycheck to contribute to your Health Savings Account, that amount will also be listed. However, if you made any additional contributions outside of your paycheck (sometimes referred to as ad hoc contributions) these contributions will not be listed on your W-2 but will still need to be included when filing your taxes.
2. Have access to your HSA distribution and/or contribution forms
Form 1099-SA: Reports distributions from your account
Form 5498-SA: Reports any contributions to your account, not just contributions made through payroll deductions
These forms include recipient instructions to help walk you through how to use the form and which boxes reflect which information. Surency Flex members can find these tax forms in the Tools & Support tab under Documents & Forms in your Surency Member Account.
3. Report distributions and contributions using tax Form 8889
Form 8889: Reports any contributions and distributions to your HSA. This form is where the numbers from your forms listed above (1099-SA, 5498-SA, W2) come together. The distributions from your 1099-SA form will need to be reported on form 8889, and indicate which distributions were eligible for medical expenses. Contributions that you made to your Health Savings Account should also be listed on this form. You’ll use this information as deduction on your main tax form you fill out, Form 1040.
4. Make additional contributions before the tax deadline
The tax filing deadline was just extended by the IRS and you now have until May 17, 2021 to file your 2020 taxes. If you haven’t filed your 2020 taxes or maxed out your annual contribution, you can still make additional contributions to your HSA for 2020 until April 15, 2021. You typically have until the tax filing deadline to make additional contributions; however, this year’s deadline extension did not provide specific information regarding Health Savings Account contributions.
*No part of this document is tax, financial or legal advice. You should consult your own legal and tax advisors regarding your personal situation.