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An HR Glossary for HR Terms

Glossary of Human Resources Management and Employee Benefit Terms

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Form 1099-SA

What Is a 1099-SA?

A 1099-SA is a U.S. tax form that reports distributions made from a health savings account (HSA), Archer medical savings account (Archer MSA), or Medicare Advantage medical savings account (MA MSA). Its purpose is to show you (and the Internal Revenue Service) how much money you spent from your account. For example, if you were to fall and break your wrist, you might use money from your HSA to pay for your medical bills. When it comes time to file your end-of-year income tax return, your HSA provider will send you a 1099-SA listing the amount you spent, so you can include that information with your tax return. 

To view a copy of the form, click here

Why Is Form 1099-SA Important?

As mentioned, the distributions listed on the 1099-SA are for medical expenses, which are tax-free. However, if HSA or MSA funds are used for non-qualified expenses, then they are taxed at a rate of 20 percent. So, while a 1099-SA shows account holders how much they’ve spent in total, this tax form also keeps them informed of any expenses that fell outside what’s considered acceptable use for medical savings accounts. But there is an easy way to avoid paying these taxes: make sure to only use the funds on qualified medical expenses.

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