1099 SA
What Form 1099-SA means for your taxes: qualified vs non-qualified HSA withdrawals, the 20% penalty before 65, the 2026 HSA limits, and a calculator.
Form 1099-SA HSA distribution calculator
What Form 1099-SA reports
Form 1099-SA reports distributions from a health savings account (HSA), Archer MSA or Medicare Advantage MSA. Box 1 is the gross distribution. You report it on Form 8889: distributions used for qualified medical expenses are tax-free; the rest is taxable income and, if you're under 65 and not disabled, also subject to a 20% additional tax.
Example: a $3,000 distribution with $2,000 of qualified expenses: $1,000 is taxable, costing $220 at 22% plus a $200 penalty under 65. Keep receipts; you can reimburse yourself for qualified expenses incurred after the HSA was opened, even years later.
2026 HSA contribution limits
$4,400 for self-only coverage and $8,750 for family coverage, plus a $1,000 catch-up at 55 or older. The HDHP minimum deductible is $1,700 self-only and $3,400 family.
Common questions
Is a 1099-SA distribution taxable?
Not if you used it for qualified medical expenses; otherwise it's taxable and, under 65, also subject to a 20% additional tax.
What are the 2026 HSA limits?
$4,400 self-only and $8,750 family, plus $1,000 at 55+.
Where do I report Form 1099-SA?
On Form 8889 with your return.
Sources
More paycheck and tax calculators: 1099 MISC · 1099 NEC · 1099G · 5498 Tax Form
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.