Form 8889: HSA Contributions and Distributions, Part by Part

“File Form 8889 to:
Report health savings account (HSA) contributions (including those made on your behalf and employer contributions).
Figure your HSA deduction.
Report distributions from HSAs.
Figure amounts you must include in income and additional tax you may owe if you fail to be an eligible individual.”

“Use Form 8889 to:
Report contributions to your HSA,
Figure your HSA deduction,
Report distributions from HSAs, and
Figure amounts you must include in income and additional tax you may owe if you fail to be an eligible individual.”

“Attach to Form 1040, 1040-SR, or 1040-NR.”

“You must file Form 8889 if any of the following applies.
You, your employer, or someone else made contributions to your HSA.
Your HSA made a distribution.
You failed to be an “eligible individual” during a “testing period” and must recognize income.
You acquired an interest in an HSA because of the death of the account beneficiary. See Death of Account Beneficiary, later.”

“If you (or your spouse, if filing jointly) received HSA distributions in 2025, you must file Form 8889 with Form 1040, Form 1040-SR, or Form 1040-NR, even if you have no taxable income or any other reason for filing Form 1040, Form 1040-SR, or Form 1040-NR.”

“To be eligible to have contributions made to your HSA, you must be covered under a high deductible health plan (HDHP) and have no other health coverage except certain disregarded coverage. If you are an eligible individual, anyone can contribute to your HSA. However, you cannot be enrolled in Medicare or be another person's dependent.”

“The maximum amount that can be contributed to your HSA depends on the type of HDHP coverage you have. If you have self-only coverage, your maximum contribution is $4,300. If you have family coverage, your maximum contribution is $8,550.
Note. If you are age 55 or older at the end of your tax year, you can make an additional contribution of $1,000.
Your maximum contribution is reduced by any employer contributions to your HSA, any contributions made to your Archer MSA, and any qualified HSA funding distributions.”

“You cannot deduct any contributions for any month in which you were enrolled in Medicare. Also, you cannot deduct contributions if you are someone else's dependent for 2025.”

“For calendar year 2026, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a
[…]
deductible health plan is $4,400. For calendar year 2026, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $8,750.”

“If you have self-only coverage, your maximum contribution is $4,400. If you have family coverage, your maximum contribution is $8,750.
Note: If you are age 55 or older at the end of your tax year, you can make an additional contribution of $1,000.”

“For calendar year 2027, the annual limitation on deductions under section 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $4,500. For calendar year 2027, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $9,000.”

“Also, include amounts contributed for 2025 made in 2026 by the unextended deadline for filing your 2025 federal income tax return, April 15, 2026.”

“Generally, enter the smaller of line 2 or line 12 on line 13 and on Schedule 1 (Form 1040), Part II, line 13. However, if the amount on line 2 is more than the amount on line 13, you, your employer, or someone else contributed more to your HSA than is allowable and you may have to pay an additional tax on the excess contributions.”

“Enter the total distributions your HSAs made in 2025. These amounts should be shown on Form 1099-SA, box 1.”

“Last-month rule. You may consider yourself an "eligible individual" for the entire year if you are an eligible individual on the 1st day of the last month of the tax year (December 1, for most individuals). You are then subject to a "testing period". See below.”

“Testing period. The testing period begins with the last month of your tax year and ends on the last day of the 12th month following that month (for example, December 1, 2025 – December 31, 2026). If you fail to remain an eligible individual during this period, other than because of death or becoming disabled, you will have to include in income the total contributions made that would not have been made except for the last-month rule. You include this amount in income in the year in which you fail to be an eligible individual. This amount is also subject to a 10% additional tax. (See Part III.)”

“Use Part III to figure any additional income and adjustments to income that must be reported on Schedule 1 (Form 1040) and additional taxes that must be reported on Schedule 2 (Form 1040) for failure to be an eligible individual during the testing period for:
Last-month rule (see Last-month rule, earlier), or
A qualified HSA funding distribution (see the Instructions for line 10, earlier).
See the discussion, earlier, on determining the testing period for both the last-month rule and a qualified HSA funding distribution. Include the amount in income in the year in which you fail to be an eligible individual.”

“Distributions from an HSA used exclusively to pay qualified medical expenses of the account beneficiary, spouse, or dependents are excludable from gross income. (See the Line 15 instructions for information on medical expenses of dependents.) You can receive distributions from an HSA even if you are not currently eligible to have contributions made to the HSA. Any part of a distribution not used to pay qualified medical expenses is includible in gross income and is subject to an additional 20% tax unless an exception applies.”

“HSA distributions included in income (line 16) are subject to an additional 20% tax unless one of the following exceptions applies.
Exceptions to the Additional 20% Tax
The additional 20% tax does not apply to distributions made after the account beneficiary:
Dies,
Becomes disabled or
Turns age 65.”

“If any of the exceptions apply to any of the distributions included on line 16, check the box on line 17a. Enter on line 17b only 20% (0.20) of any amount included on line 16 that does not meet any of the exceptions.”

“A rollover is a tax-free distribution (withdrawal) of assets from one HSA or Archer MSA that is reinvested in another HSA of the same account beneficiary. Generally, you must complete the rollover within 60 days after you received the distribution. An HSA can only receive one rollover contribution during a 1-year period.”

“Code section 4973 imposes a 6% tax on excess contributions to an HSA. See Code section 4973 and Form 5329.”

“To figure your excess contributions (including those made on your behalf), subtract your deductible contributions (line 13) from your actual contributions (line 2). However, you can withdraw some or all of your excess contributions for 2025 and they will be treated as if they had not been contributed if:
You make the withdrawal by the due date, including extensions, of your 2025 tax return (but see the Note under Excess Employer Contributions, later);
You do not claim a deduction for the amount of the withdrawn contributions; and
You also withdraw any income earned on the withdrawn contributions and include the earnings in “Other income” on your tax return for the year you withdraw the contributions and earnings.”

“Also, include amounts contributed for 2025 made in 2026 by the unextended deadline for filing your 2025 federal income tax return, April 15, 2026.”

“P.L. 119-21, July 4, 2025, amended Code section 223 to provide that:
1. An HSA eligible individual may have disregarded coverage (besides the HDHP) for telehealth and other remote care.
2. A plan will not fail to be treated as a HDHP by reason of failing to have a deductible for telehealth and other remote care services.
The amendments apply to plan years beginning after 2024.”

“Caution: DRAFT—NOT FOR FILING This is an early release draft of an IRS tax form, instructions, or publication, which the IRS is providing for your information. Do not file draft forms.”

“Expansions to HSA eligibility. Notice 2026-5, January 5, 2026, provides guidance on changes relating to health savings accounts (HSAs) enacted by Public Law 119-21, July 4, 2025, commonly known as the One Big Beautiful Bill Act (OBBBA). These changes generally expand the availability of HSAs under Code section 223.”