Health Savings Account tax benefits

If you made after-tax contributions to an HSA account (not payroll deductions) you may be able to claim a deduction on line 13. See the IRS instructions for additional information.

If you took funds out of your HSA account, or had CIGNA withdraw funds to cover your deductible, you should receive a 1099-SA reporting the distribution of funds from your HSA. These distributions from your HSA will be entered on line 14a of form 8889. If you have unreimbursed qualified medical expenses, they may be entered on line 15 of form 8889. Pages 1 and 6 of the IRS instructions explain what may be included as an unreimbursed qualified medical expense.

A sample of a completed form 8889 may be viewed here. This sample is for a family (or couple) covered under the HDHP for the whole year; the employee having $228.84 deducted each payroll for the HSA (and having $5,949.84 reported on the W-2); a $500 withdrawal from the HSA account and $500 in unreimbursed qualified medical expenses.


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