Form 1099-SA, "Distributions From an HSA, Archer MSA, or Medicare Advantage MSA" is used to report the distributions made from these health savings accounts to the account holder. Its primary purpose is to inform the IRS about the amounts withdrawn from these accounts during the year.
If you are a trustee or custodian of a health savings account (HSA), Archer MSA, or Medicare Advantage MSA, you are responsible for filing Form 1099-SA. This means that if you manage these accounts and a holder withdraws $600 or more in a calendar year, you must file a Form 1099-SA for each account holder.
Here is a breakdown of who typically files Form 1099-SA:
It is important to note that the account holder does not file Form 1099-SA themselves. Instead, they will receive a copy of the form you file for their tax records.
There are two key deadlines related to Form 1099-SA that trustees/payers must be aware of:
The deadline for trustees/payers to file Form 1099-SA with the IRS depends on the filing method:
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Trustees/payers are required to provide copies of Form 1099-SA to the recipients (individuals or entities that received interest payments) by January 31st of the year following the tax year for which the form is being issued. This ensures that recipients have the necessary information to accurately report their interest income when filing their tax returns.
It is crucial for payers to meet these deadlines to avoid potential penalties from the IRS for failure to file Form 1099-SA accurately and on time. Penalties may be imposed for late filing, failure to provide recipient copies, or reporting incorrect information on the form.
If you miss filing Form 1099-SA within the deadline, the IRS will impose a penalty for each missed return. Below is the breakdown of Form 1099-SA penalties:
Days late | Penalty per return |
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Up to 30 days | $60 |
31 days late through August 1 | $130 |
After August 1 or not filed | $330 |
Intentional disregard | $660 |
Why risk penalties?
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Let's see line-by-line instructions on how to fill out Form 1099-SA.
Enter your name, complete address, and TIN (SSN if you're an individual; EIN if you're a business).
Enter the recipient’s name, complete address, and TIN (SSN for an individual; EIN for a business).
Important notes:
Enter the appropriate code from the list below to indicate the type of distribution.
Distribution Codes for Distributions From HSAs, Archer MSAs, and Medicare Advantage MSAs
1- Normal distributions |
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2- Excess contributions |
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3- Disability |
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4- Death distribution (other than code 6) |
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5- Prohibited transaction |
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6 - Death distribution after year of death to a nonspouse beneficiary |
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Enter the FMV of the account on the date of death.
Check the box to indicate if this distribution was from an HSA, Archer MSA, or MA MSA.
Form 1099-SA can be filed electronically or by postal mail.
The IRS recommends e-filing Form 1099-SA as the process is efficient and straightforward. E-filing offers the advantage of receiving notifications promptly after the IRS processes your submission.
To e-file Form 1099-SA, you can choose an IRS-authorized e-file service provider, such as TaxZerone.
With TaxZerone, the e-filing process is streamlined and can be completed within minutes. You simply need to fill out the form, review the information, transmit it to the IRS electronically, and provide the recipient's copy.
If you prefer to file Form 1099-SA via traditional paper methods, here are the steps to follow:
Important considerations for paper filing:
If you prefer paper filing, the mailing address for Form 1099-SA varies depending on your business location. Below is a table summarizing the mailing address for Form 1099-SA:
If your business operates in or your legal residence is… | Mail Form 1099-SA to… |
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Alabama, Arizona, Arkansas, Delaware, Florida, Georgia, Kentucky, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Texas, Vermont, Virginia | Internal Revenue Service Austin Submission Processing Center P.O. Box 149213 Austin, TX 78714 |
Alaska, Colorado, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, Wyoming | Department of the Treasury IRS Submission Processing Center P.O. Box 219256 Kansas City, MO 64121-9256 |
California, Connecticut, District of Columbia, Louisiana, Maryland, Pennsylvania, Rhode Island, West Virginia | Department of the Treasury IRS Submission Processing Center 1973 North Rulon White Blvd. Ogden, UT 84201 |
Outside the United States | Internal Revenue Service, Austin Submission Processing Center, P.O. Box 149213, Austin, TX 78714 |
Before initiating the e-filing process for Form 1099-SA, it's essential to have all the necessary information ready to ensure a smooth and efficient filing experience. Here's what you'll need:
Once you have gathered all the required information, you can proceed with the e-filing process using TaxZerone in three simple steps:
Step 1: Complete Form 1099-SA
Fill out the form with the necessary details, including payer and recipient information, gross distribution, and distribution code.
Step 2: Review and transmit the return
Carefully review the information entered to ensure accuracy, and then transmit the completed Form 1099-SA to the IRS electronically.
Step 3: Provide the recipient copy
After transmitting the form to the IRS, send a copy of the completed Form 1099-SA to the recipient for their tax reporting purposes.
When you choose to e-file Form 1099-SA with TaxZerone, you can enjoy the following advantages:
By leveraging TaxZerone's e-filing solution, you can streamline the Form 1099-SA filing process, ensuring accuracy, efficiency, and compliance with IRS requirements.