How to enter Form 1099-SA Health Savings Account information in Lacerte

To enter amounts reported on the 1099-SA:

1. Go to Screen 32.1, Health Savings Accounts (8889).
2. Scroll down to the Distributions section.
3. Enter the amount from box 1 in Total HSA distributions received (1099-SA, Box 1).
4. Enter any applicable medical expenses in Qualified unreimbursed medical expenses paid using HSA distributions (and not entered elsewhere).
5. Scroll up to the Excess Contributions (5329) section.
6. Enter the amount from box 2 in Income earned on the excess contributions withdrawn (1099-SA, box 2). Lacerte reports this amount as Other Income on Form 1040.
7. Enter any other applicable information.

Additional information

• Box 5 shows the type of account that is reported on the Form 1099-SA. If Archer MSA or MA MSA is selected, refer to the article Reporting Form 1099-SA Distributions From an Archer MSA in the Individual module in Lacerte for instructions on how to enter.
• If the distribution exceeds the amount of unreimbursed qualified medical expenses, the difference is taxable and will flow to Form 1040 as Other Income with a description of HSA. An additional 10% tax will be calculated on Form 8889, Part II.
• A part or all of the amount may be excluded from the 10% tax by making an entry in Amount to exclude from 10% tax (1 = exclude all).  The 10% tax doesn't apply if the distribution is made after the account holder dies, becomes disabled, or reaches age 65.
• There's no specific input for Box 3, Distribution Code, but it may help you decide which section to report the distributions in Screen 32.1, and whether any part of the distribution should be excluded from the additional 10% tax. See the Form 1099-SA instructions for details on distribution codes.