Do I need both 1099-SA and 5498-SA?

Do I need both 1099-SA and 5498-SA?

While IRS form 1099-SA tracks disbursements from Health Savings Accounts (HSA) and Medical Savings Accounts (MSA), form5498-SAtracks contributions to those same accounts. This is an informational form only and doesn’t need to be filed with your income tax return.

What is a 5498-SA form for?

Form 5498-SA reports your annual contributions to these tax-free accounts that you use to pay for medical expenses. Contributions to similar accounts, such as Archer Medical Savings Accounts and Medicare Advantage MSAs will also warrant a Form 5498-SA. This form must be mailed to participants and the IRS by May 31.

Do I have to report Form 1099-SA on my tax return?

Am I required to report information contained on Form 1099-SA on my federal income tax return? Yes. Distributions from HSAs are generally reportable on IRS Form 1040 and Form 8889.

What happens if you don’t file 1099-SA?

Since you didn’t include your 1099-SA they will propose making an adjustment to your return that adds the distribution, but not the amount of it that was spent on qualified medical expenses. They will send you a letter and proposed additional taxes, penalties, and interest.

What triggers a 1099-SA?

You receive a 1099-SA form if you must report distributions from health savings, medical savings, and Medicare Advantage accounts. You can repay a mistaken distribution from a health savings account no later than April 15.

Where do I enter 1099-SA on my tax return?

HSA distributions However, if your 1099-SA indicates you did not use the distribution for qualified medical expenses, you will pay income tax on the portion you used for unqualified expenses. You report the taxable amount on the “other income” line of your tax return and write “HSA” beside it.

Is form 5498-SA income or deduction?

Note: Do not attach Form 5498-SA to your income tax return. Instead, keep it for your records. Generally, contributions you make to your Fidelity HSA are made on a pretax basis via payroll deduction and are not deductible. Any contributions you make on an after-tax basis—via check, for example—are tax deductible.

Is 1099-SA considered income?

HSA distributions The IRS requires you to prepare Form 8889 and attach it to your tax return when you take a distribution from an HSA. However, if your 1099-SA indicates you did not use the distribution for qualified medical expenses, you will pay income tax on the portion you used for unqualified expenses.

How does a 1099-SA affect my taxes?

However, if your 1099-SA indicates you did not use the distribution for qualified medical expenses, you will pay income tax on the portion you used for unqualified expenses. You report the taxable amount on the “other income” line of your tax return and write “HSA” beside it.

What is a 5498 SA tax form?

What is a 5498- SA Tax Form? The 5498-SA tax form is typically referred to as 5498 for short and is a government document. This form, as Fidelity Investments explains, “summarizes contributions to and the fair market value of” your Health Savings Account.

Is Form 5498 SA reportable?

The 5498-SA Tax Form is not required to report your HSA contributions so Fidelity no longer issues a 5498-SA in January. If you are expecting a 5498-SA it will be available in May. To report your HSA contributions on your tax return, you will need a copy of your W-2 for the total pretax contributions made by you through payroll or by your employer.

When do 5498 sa come out?

Some accountholders will get their 5498-SA in January with their 1099-SA. If you get your 5498-SA at this time and then make prior-year contributions, you’ll get an updated 5498-SA. You won’t get a 5498-SA form if you didn’t have contributions and your balance was zero dollars at the end of the year.

What is payer name on 1099-sa?

What is the payer name on my 1099-SA? the HSA plan administrator The Payer’s name is the name of the HSA plan administrator. This is the bank or financial institution that probably gave you a debit card in order to pay for qualified medical expenses.