Get IRS W-3 2005

You must report all employer contributions (including an employee's contributions through a cafeteria plan) to an HSA in box 12 of Form W-2 with code W. Employer contributions to an HSA that are not excludable from the income of the employee also must be reported in boxes 1, 3, and 5.

In general, when an employer makes contributions to employees' HSAs, the employer must report them on the individual Form W-2 for each employee that received a contribution. The amount an employer reports on Form W-2 must also include any money the employee elected to contribute to the HSA through a cafeteria plan.

In general, when an employer makes contributions to employees' HSAs, the employer must report them on the individual Form W-2 for each employee that received a contribution. The amount an employer reports on Form W-2 must also include any money the employee elected to contribute to the HSA through a cafeteria plan.

In most cases, your HSA contribution is reported in Box 12 of your W-2 with the code W (Employer Contributions to Health Savings Account).

IRS Form 8889 is used to report HSA contributions, distributions and your tax deductions. You will complete this form using IRS Forms 1099-SA and 5498-SA provided by HSA Bank.

You must always file a Form 8889 in any year you or an employer contributes money to your HSA or you make withdrawals from the account. The deduction you calculate on Form 8889 is taken on the first page of your income tax return.

Report health savings account (HSA) contributions (including those made on your behalf and employer contributions). Figure your HSA deduction. Report distributions from HSAs. Figure amounts you must include in income and additional tax you may owe if you fail to be an eligible individual.

The IRS requires you to prepare Form 8889 and attach it to your tax return when you take a distribution from an HSA. However, if your 1099-SA indicates you did not use the distribution for qualified medical expenses, you will pay income tax on the portion you used for unqualified expenses.

The money deposited into the HSA is not subject to federal income tax at the time of the deposit is made. Additionally, HSA funds will accumulate year-to-year if the money is not spent. HSA funds may be used to pay for qualified medical expenses at any time. ... The interest earned on the account is tax-free.

You must report all employer contributions (including an employee's contributions through a cafeteria plan) to an HSA in box 12 of Form W-2 with code W. Employer contributions to an HSA that are not excludable from the income of the employee also must be reported in boxes 1, 3, and 5.

Contributions to an HSA are tax deductible on your Form 1040 tax return as an adjustment to income. ... According to the IRS, "Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded from your gross income."

The money deposited into the HSA is not subject to federal income tax at the time of the deposit is made. Additionally, HSA funds will accumulate year-to-year if the money is not spent. HSA funds may be used to pay for qualified medical expenses at any time. ... The interest earned on the account is tax-free.

Health Savings Account Advantages: Contributions to the HSA are 100% deductible (up to the legal limit) just like an IRA. Withdrawals to pay qualified medical expenses, including dental and vision, are never taxed. Interest earnings accumulate tax-deferred, and if used to pay qualified medical expenses, are tax-free.

Hsa Contributions Reduce Your Taxable Income Health savings accounts essentially offer triple tax exemption. Your HSA contributions will reduce your taxable income today, grow tax-deferred, and can be withdrawn tax-free as long as you use it for health-related expenses.

If you fail to file W-2s on time, the IRS can assess a penalty of $50 per W-2 if you file the correct form within 30 days of the due date: The maximum penalty is $536,000 per year or $187,500 for small businesses.