IMPORTANT: At this time our system supports Distributions from Health Savings Accounts (HSAs) only. You will not be able to use this software for Distributions from Medical Savings Accounts (MSAs). All HSA Distributions must be reported on the tax return. You must file Form 8889 if any of the following applies:
 Distributions that qualify as tax-free: Add the HSA
Distribution Page and enter the Unreimbursed Qualified Medical Expenses amount
of the HSA Distribution (if applicable). HSA Contributions Page Returns filing
Married Filing Joint are required to complete both the Taxpayer and the Spouse
sections. (Spouse section not shown).  HDHP Coverage for Taxpayer/Spouse as of December 1, 2016: Select the type of High Deductible Health Plan (HDHP) coverage had in the prior year (current tax year). You will select from the following: - No Taxpayer HSA/No Spouse HSA - Self-Only - Family - None Taxpayer/Spouse HDHP Status Change: Select the applicable answer regarding Taxpayers/Spouses HDHP Coverage status change in the prior year (current tax year). Taxpayer's/Spouses HSA Contributions Made for 2016: Only enter contributions made in the prior year (current tax year of return). Taxpayer's/Spouses HSA Employer Contributions: Employer Contributions from Form W-2 (Box 12, Code W) will be carried over and display here.  Amount of Employer Contributions for 2015: Enter here the amount of the Employer Contributions included in Form W-2 Box 12 (displayed above) that are for a 2015 Contribution. Amount of Employer Contributions for 2017: Enter here the amount of the Employer Contributions included in Form W-2 Box 12 (displayed above) that are for a 2017 Contribution. Taxpayer's/Spouses Qualified HSA Funding Distributions: Traditional & Roth IRA funding distributions to the HSA in a direct trustee-to-trustee transfer. This does not include SEP IRAs or SIMPLE IRAs. HSA Distributions Page When the taxpayer/spouse received a HSA Distribution(s) in the year, a Form 1099-SA will be mailed. The Form 1099-SA does not show applicable taxable/nontaxable amounts. Add Form 1099-SA by clicking "Income" from list on the the left of page (from within the return), and select "Add New Income Form". HSA Distributions: Taxpayer's/Spouse's Distributions Reported on Form 1099-SA will be displayed here. Taxpayer's/Spouse's HSA Distributions Not Reported on Form 1099-SA: Enter any HSA distribution from the Taxpayer's/Spouse's HSA not reported on a Form 1099-SA here. Include any Form 1099-SA(s) you have NOT entered into the program here.  Distributions reported are from a non-spouse who died: Check this box when the distributions are made due to the death of a beneficiary of someone other than a spouse. And Only enter the Fair Market Value not already entered on the Form 1099-SA field above.  Amount of Taxpayer's HSA Distribution Rolled Over: Enter
the amount of the Taxpayer's/Spouses HSA distribution that was rolled
over into another HSA. Include any excess contributions that were
withdrawn before the due date in total. Taxpayer'/Spouse's Exception to the Additional 10% Tax: Enter amount of distributions made after the account beneficiary died, became disabled, or turned 65. Unreimbursed Qualified Medical Expenses Caution: HSA Distributions entered will be included in taxable income unless this section is completed. Total Unreimbursed Qualified Medical Expenses: Click the pencil to open the unreimbursed qualified medical expenses page. Amounts entered here will be deducted from the medical expenses entered into Schedule A. Taxpayer's/Spouse's Unreimbursed Qualified Medical Expenses Override: Use this box to enter a specific amount other than the calculated amount. The amount entered here will be deducted from the Unreimbursed Qualified Medical Expenses page before it is placed on the Schedule A.  Edit Medical Expenses: Check this box to edit the Medical Expenses entries. HSA Form 8889 Part III Penalty Page Amounts entered here will result in additional income and additional tax. Form 8889 Part III Penalty Page is required for all HSA Contribution(s) made and the Taxpayer/Spouse failed the testing period. Testing Period (From IRS Form 8889 Instructions): You must remain an eligible individual during the testing period. The testing period begins with the last month of your tax year and ends on the last day of the 12th month following that month (for example, December 1, 2016 – December 31, 2017). If you fail to remain an eligible individual during this period, other than because of death or becoming disabled, you will have to include in income the total contributions made that would not have been made except for the last-month rule. You include this amount in income in the year in which you fail to be an eligible individual. This amount is also subject to a 10% additional tax. Taxpayer's Qualified HSA Distribution: Enter the taxpayers Qualified HSA Distributions.  IRS Form 8889 Instructions for Line 18: You can use the Line 3 Limitation Chart and Worksheet (pictured below) for the year the contribution was made to determine the contribution you could have made if the last-month rule did not apply. Enter on line 18 the excess of the amount contributed over the redetermined amount. Last-Month Rule per IRS Form 8889 Instructions: 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 Taxpayer's Qualified HSA Funding Distribution: Enter here the amount of any qualified (nontaxable) HSA distribution. Line 3 Limitation Chart: Determine amount for "Taxpayer's Last-Month-Rule (per IRS Form 8889 Line 18 Instructions).  Line 3 Limitation Worksheet: Determine amount for "Taxpayer's Last-Month-Rule (per IRS Form 8889 Line 18 Instructions).  |