IRS Form 8889 Instructions 2021 free printable template

2021Department of the Treasury Internal Revenue ServiceInstructions for Form 8889 Health Savings Accounts (Has) Section references are to the Internal Revenue Code unless otherwise noted. For telehealth

How to fill out IRS Form 8889 Instructions

How to fill out IRS Form 8889 Instructions

1. Obtain IRS Form 8889 from the IRS website or tax preparation software.
2. Enter your name and Social Security number at the top of the form.
3. In Part I, report your Health Savings Account (HSA) contributions. Indicate the total contributions made to your HSA during the tax year.
4. Complete Part II to report distributions from your HSA. This includes any qualified medical expenses paid with HSA funds.
5. Ensure you check if you have any excess contributions or need to report any distributions for non-qualified expenses.
6. Transfer any necessary amounts to your Form 1040 or Form 1040-SR on the right lines specified.
7. Finally, sign and date the form before submitting it along with your federal income tax return.

Who needs IRS Form 8889 Instructions?

1. Individuals who made contributions to an HSA during the tax year.
2. Taxpayers who took distributions from their HSA for qualified medical expenses.
3. Those who had excess contributions to their HSA and need to report them.

People Also Ask about

What happens if you fail the testing period for HSA?

Testing period. If you fail to remain an eligible individual during the testing period, for reasons other than death or becoming disabled, you will have to include in income the total contributions made to your HSA that wouldn't have been made except for the last-month rule.

What is reported on Form 8889?

File Form 8889 to: Report health savings account (HSA) contributions (including those made on your behalf and employer contributions).

Who needs to fill out Form 8889?

If, during the tax year, you are the beneficiary of two or more HSAs or you are a beneficiary of an HSA and you have your own HSA, you must complete a separate Form 8889 for each HSA.

Do I need to include Form 8889?

You must always file a Form 8889 in any year you or an employer contributes money to your HSA or you make withdrawals from the account. The deduction you calculate on Form 8889 is taken on the first page of your income tax return.

What is the last month rule for 8889?

Last-month rule. If you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers), you are considered to be an eligible individual for the entire year, so long as you remain an eligible individual during the testing period as discussed below.

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What is IRS Form 8889 Instructions?

IRS Form 8889 Instructions provide guidance on how to complete Form 8889, which is used by individuals to report Health Savings Account (HSA) contributions and distributions.

Who is required to file IRS Form 8889 Instructions?

Individuals who have a Health Savings Account (HSA) must file IRS Form 8889 if they made contributions to or took distributions from the account during the tax year.

How to fill out IRS Form 8889 Instructions?

To fill out IRS Form 8889, follow the steps in the instructions carefully, fill in your personal information, report HSA contributions on Part I, and distributions on Part II, and ensure to follow any additional prompts for specific situations.

What is the purpose of IRS Form 8889 Instructions?

The purpose of IRS Form 8889 Instructions is to provide taxpayers with detailed directions on accurately reporting their HSA activity to ensure compliance with tax laws.

What information must be reported on IRS Form 8889 Instructions?

You must report HSA contributions, distributions, any qualified medical expenses, and any taxable amounts or penalties related to the HSA on IRS Form 8889.