Tax Resources

Tax Advantages of the HSA

A Health Savings Account (HSA) offers you a range of tax advantages, whether you’re making contributions to your account or withdrawing funds to pay for qualified medical expenses.

  • Contributions to an HSA via payroll deduction are pre-tax. This means you can reduce your taxable income by contributing to your HSA and purchase medical services with pre-tax dollars.
  • Post-tax contributions to an HSA are deductible on your federal income tax return.
  • Interest income earned in an HSA is tax-free. This applies to interest on the HSA Cash Account and any increase in value of mutual fund investments in the HSA Investment Account.
  • Withdrawals from an HSA used for qualified medical expenses are tax-free.  As long as you use the HSA funds for qualified medical expenses, you do not pay any taxes on the withdrawals.Footnote  (Opens Overlay) And at age 65, you can use the funds for any expenses―not only qualified medical expenses―subject to income tax.


Use our Chase HSA calculator to estimate your potential tax savings.

 

IRS Resources for Health Savings Accounts (HSAs)

Please visit www.irs.gov for more information on HSA tax reporting. You'll find:

  • IRS publication 969 (PDF) - This publication covers HSA eligibility, contribution limits and distribution rules.
  • IRS notices 2004-2 and 2004-50 - These notices answer specific questions about HSAs.
  • IRS Code Section 213(d) and IRS Publication 502 - These documents list qualified medical expenses you can pay for with HSA funds.
  • IRS form 8889 (PDF) - This form can help you calculate your HSA deduction when filing your personal income tax return.
 
Tax forms
 
 Begin sidebar

Tax Reporting for HSAs

Finding information on your HSA for tax reporting is easy. Simply refer to your HSA statement online to see a history of your transactions including year-to-date totals for contributions and withdrawals. For a breakdown of your employer (pre-tax) versus personal (post-tax) contributions, you’ll need to refer to your personal payroll documents (such as the W-2). Also, please remember to keep receipts for all of your qualified medical expenses.

Chase files these required tax forms with the IRS on your behalf (we'll send copies to you for your records).

1099-SA - This IRS form reports distributions made from your HSA during a calendar year. Download a sample of the 1099-SA form (PDF).

5498-SA - This IRS form reports the total contributions made to your HSA for that tax year, and the total HSA balance at year-end. Download  a sample of the 5498-SA form (PDF).

State tax laws regarding an HSA may differ.Footnote  (Opens Overlay)  HSA contributions are deductible from state income taxes in all states except Alabama, California, and New Jersey. States that are not subject to state income tax on HSA contributions are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

We recommend you consult a tax professional if you have any questions.

Calculate Your Contributions

Calculate your maximum annual contribution amount, tax savings and more.

 End sidebar