Problem Description

How do I enter Form 1099-SA, HSA Health Savings Account Information?


Solution Description

To enter 1099-SA:

  1. Go to Screen 32.1, Health Savings Accounts (8889)
  2. Scroll down to the Distributions section
  3. Enter the amount from 1099-SA, box 1 in Total HSA distributions received (1099-SA, Box 1)
  4. Enter the medical expenses in Qualified unreimbursed medical expenses paid using HSA distributions (and not entered elsewhere)
  5. Scroll up to Excess Contributions (5329) section
  6. Enter the amount from 1099-SA, box 2 in Income earned on the excess contributions withdrawn (1099-SA, box 2)

    Lacerte reports this amount as "Other Income" on Form 1040, line 21. Enter any other applicable information.
 
*Note- If the amount of the distribution exceeds the amount of unreimbursed qualified medical expenses, the difference is taxable and will flow to the Form 1040, line 21, Other Income with a description of HSA.  In addition to this, an additional 10% tax will be calculated on Form 8889, Part II. 
 
A portion or all of the amount may be excluded from the 10% tax by making an entry in Amount to exclude from 10% tax (1 = exclude all) ( Screen 32.1 Health Savings Accounts (8889).  The 10% tax does not apply if the distribution is made after the account holder dies, becomes disabled, or reaches age 65.
 
There is no specific input for Box 3, Distribution Code but may help you determine which section to report the distributions in Screen 32.1.  These codes identify the distribution received: 1?Normal distribution; 2?Excess contributions; 3?Disability; 4?Death distribution other than code 6; 5?Prohibited transaction; 6?Death distribution after year of death to a non-spouse beneficiary.
 
Box 5 indicates the type of account that is reported on the Form 1099-SA.  If Archer MSA or MA MSA is checked, refer to the article Reporting Form 1099-SA for a Medical Savings Account in the Individual Module for instructions on how to enter.