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Reporting Form 1099-SA for a Medical Savings Account in the Individual Module

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Reporting Form 1099-SA for a Medical Savings Account in the Individual Module

How do I report Form 1099-SA for a MSA in the Individual module?

Solution Description

To enter amounts from a Form 1099 SA related to an MSA:
  1. Go to Screen 32.2, Medical Savings Accounts (8853)
  2. Scroll down to the MSA Distributions section
  3. Enter the Total MSA distributions received (1099-SA, Box 1).
  4. Enter any qualified medical expenses in Total unreimbursed qualified medical expenses
If the amount of the distribution exceeds the amount of unreimbursed qualified medical expenses, the difference is taxable and will flow to the Form 1040, line 21, Other Income, with a description of MSA.  In addition to this, an additional 15% tax will be calculated on Form 8853, Part III.
Any or all of the amount may be excluded from the 15% tax by making an entry in Amount to exclude from 15% tax (1 = exclude all) in Screen 32.2, Medical Savings Accounts (8853).  The 15% tax does not apply if the distribution is made after the account holder dies, becomes disabled, or reaches age 65.

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