What IRS Form 1099-SA (2013) Is For
IRS Form 1099-SA reports 2013 distributions from your Health Savings Account (HSA), Archer Medical Savings Account (Archer MSA), or Medicare Advantage Medical Savings Account (MSA), listing withdrawals and identifying payments issued by a financial institution. It helps you track funds used for medical care and prescription drugs and shows whether distributions enter gross income or remain excluded under qualified expense rules.
The form provides documentation for future review and accurate reporting of all distributions, helping you verify amounts paid for medical care and maintain consistency across accounts. This support helps you file for the tax year, confirm reported distributions, and rely on consistent records when preparing returns or responding to later questions.
You can find additional background on related filings in the Information Returns and Reporting Forms resource.
When You’d Use IRS Form 1099-SA (2013)
You use IRS Form 1099-SA when you take distributions from an HSA, Archer MSA, or Medicare Advantage MSA during the 2013 tax year filing season. It applies when you pay medical expenses, medical care costs, or other approved amounts from the account, including uses tied to coverage arrangements elsewhere.
You use the reported amounts to complete your tax return and calculate whether any distribution becomes a taxable amount under the applicable rules this year. If payments meet qualified medical care rules, you confirm tax-free distributions, and if you file jointly, you review amounts tied to life insurance or accelerated death benefits.
Key Rules or Details for 2013
You avoid additional tax when you use HSA distributions to pay qualified medical expenses during the 2013 tax year. Qualified medical expenses include prescription drugs, vision care, and other approved medical care for an HSA. Long-term care insurance and certain long-term care insurance contracts also qualify when the taxpayer meets specific requirements.
Distributions used for non-qualified costs become taxable and may increase your gross income for the 2013 tax year. The same rules apply to accelerated death benefits, death benefits, or other income tied to a Medical Savings Account, and Archer MSA distributions follow similar requirements for eligible medical care.
Step-by-Step (High Level)
- Step 1: Review Form 1099-SA and confirm the distribution amount, taxable amount, and account type for your Health Savings Account (HSA), Archer MSA, or Medicare Advantage MSA. You should match each entry to the payments made from the account.
- Step 2: Gather receipts for medical expenses, treatment, and prescription drugs you paid for during the year. Keep records that document money paid through the account, and organize them for Form 8889 or Form 8853.
- Step 3: Complete Form 8889 or Form 8853 using figures from Form 1099-SA. Enter contributions, annual distributions, and taxable payments as required, then file your tax return with all required schedules.
- Step 4: Maintain long-term records for future review, and preserve documents that support expenses and distributions for a dependent or spouse. Retain the information to respond to potential IRS requests.
Common Mistakes and How to Avoid Them
Filing issues frequently arise when taxpayers prepare returns that include Form 1099-SA distributions. Early identification of procedural errors improves the quality of reporting and prevents unnecessary processing delays. Clear documentation also strengthens the accuracy of HSA, Archer MSA, and MSA records. Careful preparation supports consistent compliance across all filing requirements.
- Omitted Form 8889 or Form 8853: Some submissions exclude the required form, and the taxpayer must include the correct schedule to report distributions properly.
- Incorrect Distribution Entries: Amounts entered on the return occasionally differ from Form 1099-SA, and the taxpayer must confirm that all figures match the issuer’s records.
- Misreported Qualified Expenses: Certain filings classify non-qualified costs as eligible expenses, and the taxpayer must verify each expense before reporting it.
- Unattached Receipts: Some returns lack supporting documentation, and the taxpayer must retain and provide receipts to substantiate medical expenses.
What Happens After You File
You should expect the IRS to review Form 1099-SA data and compare it with reported distributions, contributions, and taxable payments tied to your savings account. It also checks any employer contributions, Medicare Part coverage, extra insurance, or accounts related to a surviving spouse, dependent, or self-employed person for that year.
If figures do not match, you may receive an IRS notice and must provide records for medical treatment, services, or other payments from the account. These reviews help you correct issues and support filing jointly or individually, and you can find further guidance through the IRS Form Help Center.
FAQs
What information does Form 1099-SA provide about payments issued from Health Savings Accounts (HSAs)?
Form 1099-SA distributions show amounts taken from your HSA and identify whether each payment relates to qualified medical care. The form helps determine whether the distribution affects gross income or remains eligible for an itemized deduction review. Taxpayers use these figures when completing Form 8889 and Form 8853 during annual filing.
In what way can HSA distributions influence deductible contributions and reporting obligations?
Distributions from an HSA may influence the taxpayer’s ability to deduct contributions when calculating annual adjustments. The taxpayer must confirm that each payment aligns with qualified medical expenses before preparing the return. Accurate reporting prevents issues with income classification and deduction limits.
What role does Form 8853 serve when managing Archer MSA or Medicare-related savings account activity?
Form 8853 reports contributions, distributions, and other entries connected to Archer MSA or Medicare-related accounts. The form also calculates taxable amounts that result from non-qualified expenses or valuation differences. Taxpayers rely on information from Form 1099-SA to complete the form accurately.
What happens to accelerated death benefits or death benefits when the account transfers to a surviving spouse?
Accelerated death benefits and death benefits may appear as taxable income depending on how the account transfers to the surviving spouse. The surviving spouse may treat the account as an HSA or Archer MSA when permitted under federal rules. Reporting requirements depend on the MSA structure and the distribution type.
How does a high-deductible health plan influence coverage rules and medical expense reporting?
A high-deductible health plan establishes eligibility for health coverage that permits HSA contributions and distributions. The plan affects how taxpayers apply qualified expenses and determine the tax treatment for annual withdrawals. The structure of the plan supports accurate reporting for medical care paid during the year.
