Dear Gina – Is there anything special HSA participants need to do when they file their taxes?
(Reposted & updated from 2019)
Hello! Timely question. Yes! Unlike an FSA or HRA, HSA participants who either contributed to and/or received distributions from (meaning they reimbursed themselves for medical expenses) an HSA in a tax year are required to submit IRS reporting forms with their tax returns.
If a participant contributed to an HSA in 2019, they will need to submit a Form 8889 along with their tax filing. If a participant took money out of their HSA for qualified medical expenses, they will need to file a Form 1099-SA. If a participant both contributed and received a reimbursement, they need to file both forms.
In many cases, these forms are provided to participants by the plan administrator. If SBA is your HSA administrator, your employees can find their applicable forms on our online portal. And, they received an email from us earlier this month with instructions on accessing and filing the forms. If SBA is not your HSA administrator (you should really talk to us about it… ?), you should verify with your administrator whether they provide completed forms and how employees receive them.