Participants: Tax Time and your HSA, FSA, & Dependent Care

posted on
Participants: Tax Time and your HSA, FSA, & Dependent Care

Participants: Tax Time and your HSA, FSA, and Dependent Care

Tax Day is April 18th this year. That means for many folks, it’s crunch time to get personal income taxes done! We’ve got you covered.

Whether you’re filing your tax return from an app on your smartphone, or devoting your Saturday afternoon on the couch with your laptop and a stack of papers: we’ve got you covered, with helpful resources for reporting some common employer benefits. If you have a health savings account (SimplyHSA) or the dependent care FSA (BESTflex Plan), read on.

 

HSA

HSA

What forms are needed? IRS Forms 8889 and 1099-SA
Form 8889: If you made or received employer contributions (added funds) to your health savings account (HSA) last year, Form 8889 is required when filing taxes. This includes:

  • HSA contributions you made to your HSA through salary reductions under a cafeteria plan
  • Contributions from your employer to your HSA
  • HSA contributions made to your HSA by someone else on your behalf
    and
  • Contributions made directly to a HSA custodian

If you received distributions (took funds out of) from your health savings account (HSA) last year, Form 8889 is required. Tax free distributions can be in the form of payments made directly to a health care provider or funds that you took out of the HSA to reimburse yourself for health care expenses. Taxable distributions and any associated penalties must be reported at tax time on Form 8889. And, if you made any post-tax contributions to your HSA, you may be able to claim an additional tax deduction. Use Form 8889 for this as well.

Form 1099-SA: Form 1099-SA is provided to you by your HSA custodian (bank). It represents a report of distributions made from your HSA. Use Form 1099-SA to find the dollar amount of HSA distributions from last year, to record in Form 8889 and then keep for your records. In the event of an IRS audit, you’re also responsible for having documentation of your health care expenses for which you used HSA funds. Keep all documents such as itemized medical invoices and Explanation of Benefits (EOBs).

IRS Form 8889 (Official instructions here)
IRS Form 1099-SA is issued by your HSA custodian or bank. (Official instructions here)

 

child playing with bubbles outdoors

Dependent Care FSA

What forms are needed? IRS Form 2441
Participants of a dependent care flexible spending account, or “DCFSA” should complete Form 2441 to report several pieces of information:

  • Name of your dependent care provider
  • Amount of pre-tax benefits contributed to the DCFSA
    AND
  • Information required for any child and dependent care tax credits that may be available to you.

The amount of pre-tax benefits contributed to your DCFSA can generally be found in your W-2, Box 10. Any amounts you contributed pre-tax to the dependent care FSA will not be reflected in the income amounts.

IRS Form 2441 (Official instructions here)

 

couple smiling while looking at a laptop computer together

FSA

What forms are needed? N/A

Regular health care FSAs do not require any tax reporting. For real.

If you received any health care FSA contributions from an employer, you would see these reported as “flex credits” on your W-2 in Box 14. But this is for informational purposes only. You don’t need to report these numbers anywhere on your personal tax return!

We’re sorry this section isn’t more exciting.


*Employee Benefits Corporation does not provide tax advice. Always consult a tax advisor for questions about your tax returns.
Learn more about how your SimplyHSA works in FAQs.
Learn more about how your BESTflex dependent care flexible spending account works in FAQs.

 

Return
  • ACA Watch | July 25, 2017
    Today the Senate cast a special procedural vote of 51-50 in favor of the Senate being able to continue debate concerning repeal or repeal-and-replace of the Affordable Care Act (ACA). It is important...
  • ACA Watch | July 11, 2017
    Today GOP leaders will meet with other Republican Senators to discuss new revisions of the most recent health care bill to replace the Affordable Care Act (ACA). The Better Care Reconciliation Act of ...
  • ACA Watch | June 5, 2017
    This week, Congress reconvenes after being on a recess last week. Expect renewed activity on the health care reform front. Congress will be able to devote new attention on the Senate side, to develop...
  • Let’s learn about your employer health care benefits
    What are employer-sponsored health care benefits? You might have benefits from your employer or know someone who does. Let's discuss. Employer-sponsored health care benefits are known by many names: ...
  • 8 Essential Tips for Your Benny™ Benefits Card

    Important tips for participants with a Benny™ Benefits Card
  • Internships, Obamacare and Benefits

    If you currently have interns, or are hiring some soon for a summer internship program, there's something you should know.
  • Polar Plunge 2015 [PHOTOS]

    Seven of our employees participated in the 2015 Polar Plunge and took the jump. We also raised $3,436.70 for the Special Olympics, beating our goal by almost two and a half thousand dollars.
  • Benefits Selling Expo 2015

    The 11th annual 2015 Benefits Selling Expo is taking place next week, May 19th - 21st in Scottsdale, Arizona. We will be there, so make sure to check us out.
Location (map)
1350 Deming Way, Ste 300
Middleton, WI 53562-4640

Mail Address
PO Box 44347
Madison, WI 53744-4347