How to Fill Out Form 8889 When HSA is With Post Tax Dollars

When you contribute to a Health Savings Account (HSA) with post-tax dollars, you must correctly fill out Form 8889 for tax reporting purposes. Here are the steps to follow:

1. Fill out Part I of Form 8889 to report your HSA contributions made with post-tax dollars. Include the amount contributed in Box 2.
2. Calculate the total contributions made to your HSA for the year, including both pre-tax and post-tax contributions.
3. Use Form 8889 to report any HSA distributions you received during the year. If the distributions were used for qualified medical expenses, you won't owe taxes on them.
4. Include any employer contributions to your HSA in Box 9 of Form 8889. These contributions are usually made on a pre-tax basis.
5. Calculate the taxable portion of your HSA distributions, if any. This amount is only applicable if you used the distributions for non-qualified expenses.

Remember to keep accurate records of your HSA contributions and distributions to ensure accurate tax reporting. Consult with a tax professional for guidance if needed.

Completing Form 8889 for your HSA contributions made with post-tax dollars may seem daunting, but it's essential for accurate tax reporting. Start by reporting your post-tax contributions in Part I, ensuring you include the correct amount in Box 2.