What Form 8889 2013 Is For
IRS Form 8889 (2013) is used to report activity related to a health savings account for the 2013 tax year. It helps the Internal Revenue Service understand how much an individual contributed, how much was withdrawn, and whether the person remained eligible for a high-deductible health plan. It also supports the calculation of the tax deduction for HSA contributions and the reporting of taxable income when funds are not used for qualified medical expenses.
Anyone who had an HSA in 2013 and made contributions or took distributions must file Form 8889 with a federal tax return. Individuals who received employer contributions or distributions on a wage and tax statement must also attach the form. Taxpayers filing a past-due return or submitting an amended federal income tax return must include Form 8889 if an HSA was active during the year.
For a detailed breakdown of filing requirements, eligibility rules, and step-by-step instructions, see our comprehensive guide for Form 8889: Health Savings Accounts (HSAs) – 2013 Tax Year.
When You’d Use Form 8889
A taxpayer must use Form 8889 for any 2013 activity involving a health savings account. This includes personal contributions, employer contributions, or contributions made on a pre-tax basis. The form is also required when HSA funds are used to pay medical expenses or when distributions are received for non-medical reasons.
Form 8889 applies to late or amended returns. If a taxpayer discovers excess contributions, fails the testing period, or omits HSA information on a prior submission, it can be filed with an amended income tax return. Individuals completing a past-due federal tax return for 2013 must still include Form 8889 when an HSA was used that year.
Key Rules or Details for 2013
Eligibility for a health savings account in 2013 required enrollment in a high-deductible health plan with a minimum annual deductible of $1,250 for self-only coverage or $2,500 for family coverage. Contribution limits were $3,250 for self-only coverage and $6,450 for family coverage, plus a catch-up contribution for qualifying individuals. Employer contributions counted toward the annual HSA contribution limit and reduced the amount a taxpayer could contribute on a pre-tax basis—any excess contribution created an excise tax liability until removed.
Taxpayers using the last month rule had to stay eligible through the testing period or include the additional amount in gross income. Investment earnings and HSA funds remained tax-free when used for qualified medical expenses. These rules ensured proper tax treatment and compliance with Internal Revenue Service requirements. Understanding these limits helped taxpayers avoid penalties and maintain tax advantages.
For complete details on wage reporting, withholdings, and unemployment tax filings, see our guide for Individual Tax Forms.
Step-by-Step (High-Level)
Part I: Contributions and Deductions
Part I reports all HSA contributions for the tax year and helps determine the deductible amount for the federal tax return. The taxpayer identifies coverage type, lists contributions, and reports employer contributions. The section calculates whether the annual limit was exceeded and determines the final deduction.
Steps in Part I include:
- Report the type of health plan coverage for 2013.
- Enter total HSA contributions made by the taxpayer and others.
- Report employer contributions listed on the wage and tax statement.
- Calculate annual contribution limits based on months of eligibility.
- Identify any excess contributions.
- Transfer the deductible amount to the federal tax return.
Part II: Distributions and Medical Expenses
Part II reports payments made from HSA funds and determines whether they were used for qualified medical expenses. The taxpayer enters distributions from Form 1099-SA and lists eligible medical expenses, including dental expenses, vision expenses, and certain medical expenses allowed under federal rules.
Steps in Part II include:
- Enter total HSA distributions for 2013.
- Report rollovers or withdrawn excess contributions.
- List qualified medical expenses covered with HSA funds.
- Determine whether any distributions were taxable income.
- Transfer taxable amounts to the income tax return.
Part III: Additional Taxes
Part III applies to individuals who failed the testing period, used funds for non-qualified medical services, or did not maintain high-deductible health plan eligibility. It identifies the amount that must be included in gross income and calculates any excise tax owed.
Steps in Part III include:
- Identify income resulting from failed testing period rules.
- Determine excise tax for non-qualified distributions.
- Review whether exceptions apply for age, disability, or death.
Common Mistakes and How to Avoid Them
- Miscalculating HSA contributions by ignoring employer amounts: Include employer contributions when determining your annual limit and review your Form W-2 to confirm total contributions.
- Spending HSA funds on non-eligible expenses: Use HSA distributions only for qualified medical expenses and keep receipts to support each withdrawal.
- Failing to track HSA expenses and documentation: Maintain a clear log of dates, providers, and amounts so distributions can be matched to qualified costs.
- Leaving excess contributions uncorrected: Remove excess contributions (and any related earnings, if required) before the deadline to avoid the ongoing excise tax.
- Overlooking eligibility changes during the year: Recheck monthly HSA eligibility, especially after coverage changes like switching to family coverage or adding an. HRA
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
After filing IRS Form 8889 2013 with the federal tax return, the Internal Revenue Service reviews HSA contributions, employer contributions, and distributions to confirm proper tax treatment. If the information matches what health plans and trustees report, the tax deduction applies, and qualified medical expenses remain tax-free.
Any incorrect reporting, such as excess contributions or taxable income from non-qualified medical costs, may lead the IRS to request documentation or adjust income taxes. HSA funds continue to accumulate, allowing taxpayers to pay for medical expenses, dental expenses, and other eligible medical expenses with ongoing tax advantages.
FAQs
Who must file IRS Form 8889 (2013)?
Anyone with a health savings account in 2013 must file IRS Form 8889 for 2013 to report HSA contributions, employer contributions, and distributions required by the Internal Revenue Service.
What medical expenses qualify for tax-free withdrawals from an HSA?
HSA funds may be used for tax-free withdrawals to cover qualified medical expenses, including medical expenses, dental expenses, vision expenses, and other eligible medical expenses approved by the Internal Revenue Service.
How do contribution limits work for a health savings account in 2013?
The annual HSA contribution limit for 2013 depended on self-only coverage or family coverage under a high-deductible health plan, and any excess contribution above the limit created excise tax liability.
What happens if HSA funds are used for non-qualified expenses?
Using HSA funds for expenses that are not qualified medical expenses results in taxable income and may trigger additional excise tax on the federal income tax return.
Can HSA funds be used while receiving unemployment compensation?
HSA funds may be used to pay certain health insurance premiums while receiving unemployment compensation, subject to the tax treatment rules set by the Internal Revenue Service.
