1099-SA Form 2023 - 2024

Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA is the tax form for reporting the distributions above. It’s an information return that’s a part of the other Forms 1099. Although the distributions reported with Form 1099-SA aren’t taxable at all times, it’s still required on Form 1040 when the filer prepares a federal income tax return. 

Taxable and Non-Taxable Form 1099-SA Distributions

The distributions reported on Form 1099-SA aren’t taxable if the distributions were used to pay for qualified medical expenses for either the account owner or the eligible family member(s). The distributions are also tax-free if they were rolled over. If solely the account owner used the distributions to pay the qualified medical expenses for himself or herself, the distributions will be tax-free regardless.

The distributions are taxable though if there were earnings on the contributions. There is also a 6 percent excise tax for every year the excess contributions remain. 

Where will I get Form 1099-SA?

Your plan provider will send you Form 1099-SA reporting the distributions either by mail or electronically. It comes down to how you opted to receive the information returns along with other documents such as account statements, etc.

The same as other information returns, Form 1099-SA must be attached to the federal income tax return of the filer. Although the filer may not pay taxes on the distributions, it’s possible to deduct the distributions so they must be attached to the tax return regardless. 

How to attach Form 1099-SA to 1040?

There is no difference between how Form 1099-SA is attached to 1040 and other information returns, or other forms for federal income taxes. The taxpayers who e-file don’t knowingly need to do anything. Everything will be handled by the tax preparation software, but those who are filing a paper return must physically attach Form 1099-SA on the top right or left corner of their tax return by stapling it.