How to Report Distributions from HSA on Form 8889 for 2017

Reporting distributions from your HSA on Form 8889 for the year 2017 is an important step to ensure compliance with IRS regulations. When you take distributions from your HSA, you need to accurately report them on Form 8889 to avoid any penalties or issues with the IRS.

Here's a step-by-step guide on how to report distributions from your HSA on Form 8889:

1. Obtain Form 8889: You can download Form 8889 from the IRS website or request a copy from your tax preparer.
2. Fill out Part II: In Part II of Form 8889, you will report your distributions from your HSA.
3. Enter total distributions: Report the total distributions you received from your HSA during the tax year on line 14a.
4. Report qualified medical expenses: On line 14b, you will report the total amount of distributions used for qualified medical expenses.
5. Determine taxable amount: Calculate the taxable amount of your distributions by subtracting the total qualified medical expenses from the total distributions.
6. Enter taxable amount: Report the taxable amount on line 15 of Form 8889.
7. Complete the rest of the form: Make sure to fill out the remaining sections of Form 8889 to provide a full picture of your HSA activity for the year.

By following these steps and accurately reporting your HSA distributions on Form 8889 for the year 2017, you can ensure that you are in compliance with IRS regulations and avoid any potential issues.

When you take distributions from your Health Savings Account (HSA) during the 2017 tax year, it's essential to correctly report this on Form 8889 to remain compliant with IRS regulations. By following these steps, you can ensure that your HSA activity is accurately reported.

1. Begin by downloading Form 8889 from the IRS website, or you can request one from your tax advisor.
2. In Part II of the form, provide details about your HSA distributions.
3. On line 14a, supply the total amount of money you withdrew from your HSA throughout the year.
4. Line 14b is where you’ll report the total sum of distributions spent on qualified medical expenses, which is a critical part in determining your tax obligations.
5. Calculate the taxable portion of your distributions by taking the total distributions and subtracting the expenses that qualified.
6. Report the calculated taxable amount on line 15 of the form.
7. Don’t forget to thoroughly fill out the rest of Form 8889 to give a complete overview of your HSA transactions for 2017.

By ensuring all your distributions from your HSA for 2017 are duly reported on Form 8889, you can avoid possible fines and stay on the right side of the IRS.