IRS releases 2011 Forms for HSA Reporting
The Form 8889 is used by HSA account holders to report contributions, including contributions made by the HSA account holder’s employer, as well as distributions from the HSA that occur during the tax year. This form is also used to calculate HSA deductions and any reportable income or tax that could be owed if the account holder becomes HSA-ineligible during the tax year. The IRS released the 2011 edition of the Form 8889, together with Instructions for completing the Form. The 2011 form reflects the changes made by the health care reform law; specifically relating to the increase in penalty from 10% to 20% for nonqualified distributions, and the prescription requirement applicable to over-the counter medications.
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