Instructions For Form 8889 - Health Savings Accounts (Hsas) - 2017

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2017
Department of the Treasury
Internal Revenue Service
Instructions for Form 8889
Health Savings Accounts (HSAs)
Definitions
Section references are to the Internal Revenue
HSA
Code unless otherwise noted.
Generally, an HSA is a health savings
Eligible Individual
Future Developments
account set up exclusively for paying
To be eligible to have contributions
the qualified medical expenses of the
made to your HSA, you must be
For the latest information about
account beneficiary or the account
covered under a high deductible health
developments related to Form 8889 and
beneficiary's spouse or dependents.
plan (HDHP) and have no other health
its instructions, such as legislation
coverage except permitted coverage. If
enacted after they were published, go to
Distributions From an HSA
you are an eligible individual, anyone
IRS.gov/Form8889.
Distributions from an HSA used
can contribute to your HSA. However,
General Instructions
exclusively to pay qualified medical
you cannot be enrolled in Medicare or
be claimed as a dependent on another
expenses of the account beneficiary,
spouse, or dependents are excludable
person's tax return. An individual
Purpose of Form
from gross income. (See the
Line 15
doesn't fail to be treated as an eligible
Use Form 8889 to:
individual for any period merely
instructions for information on medical
expenses of dependents not claimed on
because the individual receives hospital
Report health savings account (HSA)
your return.) You can receive
care or medical services under any law
contributions (including those made on
administered by the Secretary of
distributions from an HSA even if you
your behalf and employer contributions),
are not currently eligible to have
Veterans Affairs for a service-connected
Figure your HSA deduction,
contributions made to the HSA.
disability. You must be, or be
Report distributions from HSAs, and
considered, an eligible individual on the
However, any part of a distribution not
Figure amounts you must include in
used to pay qualified medical expenses
first day of a month to take an HSA
income and additional tax you may owe
is includible in gross income and is
deduction for that month (see
if you fail to be an eligible individual.
Last-month rule
next).
subject to an additional 20% tax unless
Additional information. See Pub.
an exception applies.
Last-month rule. If you are an eligible
969, Health Savings Accounts and
individual on the first day of the last
Other Tax-Favored Health Plans, for
Qualified Medical Expenses
month of your tax year (December 1 for
more details on HSAs. Also, see
most taxpayers), you are considered to
Generally, qualified medical expenses
Instructions for Form 1040 and
be an eligible individual for the entire
for HSA purposes are unreimbursed
Instructions for Form 1040NR.
year.
medical expenses that could otherwise
be deducted on Schedule A (Form
Who Must File
Testing period. You must remain
1040). See the Instructions for
an eligible individual during the testing
You must file Form 8889 if any of the
Schedule A and Pub. 502, Medical and
period. The testing period begins with
following applies.
Dental Expenses. Expenses incurred
the last month of your tax year and ends
You (or someone on your behalf,
before you establish your HSA are not
on the last day of the 12th month
including your employer) made
qualified medical expenses. If, under
following that month (for example,
contributions for 2017 to your HSA.
the last-month rule, you are considered
December 1, 2017 – December 31,
You received HSA distributions in
to be an eligible individual for the entire
2018). If you fail to remain an eligible
2017.
year for determining the contribution
individual during this period, other than
You must include certain amounts in
amount, only those expenses incurred
because of death or becoming disabled,
income because you failed to be an
after you actually establish your HSA
you will have to include in income the
eligible individual during the testing
are qualified medical expenses.
total contributions made that would not
period.
have been made except for the
Note. Proposed rules provide that
You acquired an interest in an HSA
last-month rule. You include this amount
medical expenses are considered
because of the death of the account
in income in the year in which you fail to
incurred when the person is provided
beneficiary. See
Death of Account
be an eligible individual. This amount is
with the medical care that gives rise to
Beneficiary, later.
also subject to a 10% additional tax.
the medical expenses, and not when
If you (or your spouse, if filing
(See
Part
III.)
the person is formally billed, charged
jointly) received HSA
!
for, or pays for the medical care. See 72
distributions in 2017, you must
Account Beneficiary
FR 43961.
CAUTION
file Form 8889 with Form 1040 or Form
The account beneficiary is the individual
1040NR even if you have no taxable
Note. Only prescribed medicines or
on whose behalf the HSA was
income or any other reason for filing
drugs (including over-the-counter
established.
Form 1040 or Form 1040NR.
medicines and drugs that are
prescribed) and insulin (even if
purchased without a prescription) for the
Jan 12, 2018
Cat. No. 37971Y

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