Form 8889 is a tax form used by individuals to report Health Savings Account (HSA) contributions, distributions, and the related deductions on their federal income tax return.
This form is required for taxpayers who have established an HSA, which allows them to save for medical expenses on a tax-advantaged basis. On Form 8889, taxpayers must provide details on contributions made to the HSA, any distributions taken from the account, and whether those distributions were used for qualified medical expenses.
Additionally, the form helps determine the maximum allowable HSA deduction, which varies based on factors such as age and coverage type (self-only or family coverage). For example, if an individual contributes $3,000 to their HSA and uses $2,500 for qualified medical expenses, they will need to report both the contributions and distributions on Form 8889.
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