Department of the Treasury

Internal Revenue Service

Publication 969

Cat. No. 24216S

Health Savings Accounts and Other Tax-Favored Health Plans

For use in preparing 2024 Returns

Jan 13, 2025

Future Developments

Go to IRS.gov/Pub969 for the latest information about Pub. 969.

What’s New

Preventive care for purposes of qualifying as a high deductible health plan (HDHP) under section 223. Notice 2024﻿-﻿75, October 28, 2024, expands the list of preventive care benefits permitted to be provided by a high deductible health plan without a deductible, or with a deductible below the applicable minimum deductible for the HDHP, to include over-the-counter oral contraceptives (including emergency contraceptives) and male condoms. Notice 2024﻿-﻿75 also clarifies that (1) all types of breast cancer screening for individuals who have not been diagnosed with breast cancer are treated as preventive care, (2) continuous glucose monitors for individuals diagnosed with diabetes are generally treated as preventive care, and (3) the safe harbor for absence of a deductible for certain insulin products applies without regard to whether the insulin product is prescribed to treat an individual diagnosed with diabetes or prescribed for the purpose of preventing the exacerbation of diabetes or the development of a secondary condition.

For more information on Notice 2024﻿-﻿75, 2024﻿-﻿44 I.R.B. 1026, see IRS.gov/irb/2024﻿-﻿44_IRB#NOT-2024﻿-﻿75.

Expenses treated as amounts paid for medical care. Notice 2024﻿-﻿71, October 28, 2024, provides a safe harbor under section 213 of the Internal Revenue Code for amounts paid for condoms. The Treasury Department and the IRS will treat amounts paid for condoms as amounts paid for medical care under section 213(d). Because amounts paid for condoms are treated as expenses for medical care under section 213(d), if the other requirements of section 213(a) are met (for example, if a taxpayer's total medical expenses exceed the 7.5 percent adjusted gross income limitation and are not compensated for by insurance or otherwise), then amounts paid by the taxpayer for condoms for the taxpayer, the taxpayer's spouse, or the taxpayer's dependent are deductible as expenses for medical care under section 213. Additionally, because amounts paid for condoms are treated as expenses for medical care under section 213(d), the amounts are also eligible to be paid or reimbursed under a health Flexible Spending Arrangement (FSA), Archer Medical Savings Account (MSA), Health Reimbursement Arrangement (HRA), or Health Savings Account (HSA). However, if an amount paid for condoms is paid or reimbursed under a health FSA, Archer MSA, HRA, HSA, or any other health plan or otherwise, it is not a deductible expense under section 213.

For more information on Notice 2024﻿-﻿71, 2024﻿-﻿44 I.R.B. 1026, see IRS.gov/irb/2024﻿-﻿44_IRB#NOT-2024﻿-﻿71.

Health Flexible Spending Arrangement (FSA) contribution and carryover for 2024. Revenue Procedure 2023﻿-﻿34, November 9, 2023, provides that for tax years beginning in 2024, the dollar limitation under section 125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $3,200. If the cafeteria plan permits the carryover of unused amounts, the maximum carryover amount is $640.

Reminders

Expenses related to COVID-19 and preventive care for purposes of high deductible health plans. Notice 2023﻿-﻿37, June 23, 2023, addresses the announced end of the COVID-19 public health emergency and the National Emergency Concerning the Novel Coronavirus Disease 2019 Pandemic on May 11, 2023; it modifies prior guidance regarding benefits relating to testing for and treatment of COVID-19 that can be provided by a health plan that otherwise satisfies the requirements to be a high deductible health plan (HDHP) under section 223(c)(2)(A) of the Internal Revenue Code (Code). Specifically, the relief described in Notice 2020﻿-﻿15, 2020﻿-﻿14 IRB 559, applies only with respect to plan years ending on or before December 31, 2024.

Notice 2023﻿-﻿37 also clarifies whether certain items and services are treated as preventive care under section 223(c)(2)(C). Specifically, the preventive care safe harbor as described in Notice 2004﻿-﻿23, 2004﻿-﻿15 IRB 725, does not include screening (for example, testing) for COVID-19, effective as of July 24, 2023. Notice 2023﻿-﻿37 also provides that items and services recommended with an “A” or “B” rating by the United States Preventive Services Task Force on or after March 23, 2010, are treated as preventive care for purposes of section 223(c)(2)(C), regardless of whether these items and services must be covered, without cost sharing, under Public Health Service Act section 2713.

For more information on Notice 2023﻿-﻿37, 2023﻿-﻿30 I.R.B. 359, see IRS.gov/irb/2023﻿-﻿30_IRB#NOT-2023﻿-﻿37.

Telehealth and other remote care services. Public Law 117﻿-﻿328, December 29, 2022, amended section 223 to provide that an HDHP may have a $0 deductible for telehealth and other remote care services for plan years beginning before 2022; months beginning after March 2022 and before 2023; and plan years beginning after 2022 and before 2025. Also, an “eligible individual” remains eligible to make contributions to the individual’s Health Savings Account (HSA) even if the individual has coverage outside of the HDHP during these periods for telehealth and other remote care services.

Health Flexible Spending Arrangement (FSA) contribution and carryover for 2023. Revenue Procedure 2022﻿-﻿38, October 18, 2022, provides that for tax years beginning in 2023, the dollar limitation under section 125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $3,050. If the cafeteria plan permits the carryover of unused amounts, the maximum carryover amount is $610.

Insulin products. Public Law 117﻿-﻿169, August 16, 2022, amended section 223 to provide that an HDHP may have a $0 deductible for selected insulin products. The amendment applies to plan years beginning after 2022.

Home testing for COVID-19 and personal protective equipment for preventing spread of COVID-19. News Release IR-2021﻿-﻿181, September 10, 2021, reminds that the cost of home testing for COVID-19 and the costs of personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of COVID-19 are eligible medical expenses that can be paid or reimbursed under health FSAs, HSAs, Health Reimbursement Arrangements (HRAs), or Archer Medical Savings Accounts (MSAs).

Surprise billing for emergency services or air ambulance services. Public Law 116﻿-﻿260, December 27, 2020, amended section 223 to provide that an HDHP may provide benefits under federal and state anti-“surprise billing” laws with a $0 deductible. Also, an “eligible individual” remains eligible to make contributions to its HSA even if the individual receives anti-“surprise billing” benefits outside of the HDHP. The amendment applies to plan years beginning after 2021.

Note. Anti-“surprise billing” laws generally protect individuals from “surprise billing” for items like emergency medical services, some non-emergency medical services, and air ambulance services.

CautionAsk your insurance provider whether your HDHP and any other coverage meet the requirements of section 223.

CautionAsk your HSA trustee whether the HSA and trustee meet the requirements of section 223.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 800-THE-LOST (800﻿-﻿843﻿-﻿5678) if you recognize a child.

Introduction

Various programs are designed to give individuals tax advantages to offset health care costs. This publication explains the following programs.

Health Savings Accounts (HSAs).

Medical Savings Accounts (Archer MSAs and Medicare Advantage MSAs).

Health Flexible Spending Arrangements (FSAs).

Health Reimbursement Arrangements (HRAs).

An HSA may receive contributions from an eligible individual or any other person, including an employer or a family member, on behalf of an eligible individual. Contributions, other than employer contributions, are deductible on the eligible individual’s return whether or not the individual itemizes deductions. Employer contributions aren’t included in income. Distributions from an HSA that are used to pay qualified medical expenses aren’t taxed.

An Archer MSA may receive contributions from an eligible individual and the eligible individual’s employer, but not both in the same year. Contributions by the individual are deductible whether or not the individual itemizes deductions. Employer contributions aren’t included in income. Distributions from an Archer MSA that are used to pay qualified medical expenses aren’t taxed.

A Medicare Advantage MSA is an Archer MSA designated by Medicare to be used solely to pay the qualified medical expenses of the account holder who is enrolled in Medicare. Contributions can be made only by Medicare. The contributions aren’t included in your income. Distributions from a Medicare Advantage MSA that are used to pay qualified medical expenses aren’t taxed.

A health FSA may receive contributions from an eligible individual. Employers may also contribute. Contributions aren’t includible in income. Reimbursements from an FSA that are used to pay qualified medical expenses aren’t taxed.

An HRA must receive contributions from the employer only. Employees may not contribute. Contributions aren’t includible in income. Reimbursements from an HRA that are used to pay qualified medical expenses aren’t taxed.

Comments and suggestions.

We welcome your comments about this publication and suggestions for future editions.

You can send us comments through IRS.gov/FormComments. Or, you can write to the Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments and suggestions as we revise our tax forms, instructions, and publications. Don’t send tax questions, tax returns, or payments to the above address.

Getting answers to your tax questions.

If you have a tax question not answered by this publication or the How To Get Tax Help section at the end of this publication, go to the IRS Interactive Tax Assistant page at IRS.gov/Help/ITA where you can find topics by using the search feature or viewing the categories listed.

Getting tax forms, instructions, and publications.

Go to IRS.gov/Forms to download current and prior-year forms, instructions, and publications.

Ordering tax forms, instructions, and publications.

Go to IRS.gov/OrderForms to order current forms, instructions, and publications; call 800﻿-﻿829﻿-﻿3676 to order prior-year forms and instructions. The IRS will process your order for forms and publications as soon as possible. Don’t resubmit requests you’ve already sent us. You can get forms and publications faster online.

Health Savings Accounts (HSAs)

An HSA is a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. You must be an eligible individual to contribute to an HSA.

No permission or authorization from the IRS is necessary to establish an HSA. You set up an HSA with a trustee. A qualified HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of individual retirement arrangements (IRAs) or Archer MSAs. The HSA can be established through a trustee that is different from your health plan provider.

Your employer may already have some information on HSA trustees in your area.

If you have an Archer MSA, you can generally roll it over into an HSA tax free. See Rollovers, later.

What are the benefits of an HSA?

You may enjoy several benefits from having an HSA.

You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you don’t itemize your deductions on Schedule﻿ ﻿A (Form 1040).

Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded from your gross income.

The contributions remain in your account until you use them.

The interest or other earnings on the assets in the account are tax free.

Distributions may be tax free if you pay qualified medical expenses. See Qualified medical expenses, later.

An HSA is “portable.” It stays with you if you change employers or leave the work force.

Qualifying for an HSA Contribution

To be an eligible individual and qualify for an HSA contribution, you must meet the following requirements.

You are covered under a high deductible health plan (HDHP), described later, on the first day of the month.

You have no other health coverage except what is permitted under Other health coverage, later.

You aren’t enrolled in Medicare.

You can’t be claimed as a dependent on someone else’s 2024 tax return.

Under the last-month rule, you are considered to be an eligible individual for the entire year if you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers) and you meet certain other requirements.

If you meet these requirements, you are an eligible individual even if your spouse has non-HDHP family coverage, provided your spouse’s coverage doesn’t cover you.

Also, you may be an eligible individual even if you receive hospital care or medical services under any law administered by the Secretary of Veterans Affairs for a service-connected disability.

If another taxpayer is entitled to claim you as a dependent, you can’t claim a deduction for an HSA contribution. This is true even if the other person doesn’t receive an exemption deduction for you because the exemption amount is zero for tax years 2018 through 2025.

Each spouse who is an eligible individual who wants an HSA must open a separate HSA. You can’t have a joint HSA.

High deductible health plan (HDHP).

An HDHP has:

A higher annual deductible than typical health plans, and

A maximum limit on the sum of the annual deductible and out-of-pocket medical expenses that you must pay for covered expenses. Out-of-pocket expenses include co-payments and other amounts, but don’t include premiums.

An HDHP may provide preventive care benefits without a deductible or with a deductible less than the minimum annual deductible. Preventive care includes, but isn’t limited to, the following.

Periodic health evaluations, including tests and diagnostic procedures ordered in connection with routine examinations, such as annual physicals.

Routine prenatal and well-child care.

Child and adult immunizations.

Tobacco cessation programs.

Obesity weight-loss programs.

Screening services. This includes screening services for the following.

Cancer.

Heart and vascular diseases.

Infectious diseases.

Mental health conditions.

Substance abuse.

Metabolic, nutritional, and endocrine conditions.

Musculoskeletal disorders.

Obstetric and gynecological conditions.

Pediatric conditions.

Vision and hearing disorders.

For more information on screening services, see Notice 2004﻿-﻿23, 2004﻿-﻿15 I.R.B. 725, available at IRS.gov/irb/2004﻿-﻿15_IRB#NOT-2004﻿-﻿23.

For additional guidance on preventive care, see Notice 2004﻿-﻿50, 2004﻿-﻿2 C.B. 196, Q&A 26 and 27, available at IRS.gov/irb/2004﻿-﻿33_IRB#NOT-2004﻿-﻿50; Notice 2013﻿-﻿57, 2013﻿-﻿40 I.R.B. 293, available at IRS.gov/pub/irs-drop/n-13﻿-﻿57.pdf; and Notice 2024﻿-﻿75, 2024﻿-﻿44 I.R.B. 1026, available at IRS.gov/irb/2024﻿-﻿44_IRB#NOT-2024﻿-﻿75. Preventive care can also include coverage for treatment of individuals with certain chronic conditions listed in the Appendix of Notice 2019﻿-﻿45, 2019﻿-﻿32 I.R.B. 593, if such services were received or items were incurred on or after July 17, 2019. For information on preventive care for chronic conditions, see Notice 2019﻿-﻿45, 2019﻿-﻿32 I.R.B. 593, available at IRS.gov/pub/irs-drop/n-19﻿-﻿45.pdf.

The following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2024.

Self-only coverage

Family coverage

Minimum annual deductible

$1,600

 $3,200

Maximum annual deductible and other out-of-pocket expenses*

$8,050

 $16,100

* This limit doesn’t apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit applies.

TipThe following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2025.

Self-only coverage

Family coverage

Minimum annual deductible

$1,650

$3,300

Maximum annual deductible and other out-of-pocket expenses*

$8,300

$16,600

* This limit doesn’t apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit applies.

Self-only HDHP coverage is HDHP coverage for only an eligible individual. Family HDHP coverage is HDHP coverage for an eligible individual and at least one other individual (whether or not that individual is an eligible individual).

Example. You, an eligible individual, and your dependent child are covered under an “employee plus one” HDHP offered by your employer. This is family HDHP coverage.

Family plans that don’t meet the high deductible rules.

There are some family plans that have deductibles for both the family as a whole and for individual family members. Under these plans, if you meet the individual deductible for one family member, you don’t have to meet the higher annual deductible amount for the family. If either the deductible for the family as a whole or the deductible for an individual family member is less than the minimum annual deductible for family coverage, the plan doesn’t qualify as an HDHP.

Other health coverage.

If you (and your spouse, if you have family coverage) have HDHP coverage, you can’t generally have any other health coverage. However, you can still be an eligible individual even if your spouse has non-HDHP coverage, provided you aren’t covered by that plan.

 You can have additional insurance that provides benefits only for the following items.

Liabilities incurred under workers’ compensation laws, tort liabilities, or liabilities related to ownership or use of property.

A specific disease or illness.

A fixed amount per day (or other period) of hospitalization.

You can also have coverage (whether provided through insurance or otherwise) for the following items.

Accidents.

Disability.

Dental care.

Vision care.

Long-term care.

Telehealth and other remote care.

CautionPlans in which substantially all of the coverage is through the items listed earlier aren’t HDHPs. For example, if your plan provides coverage substantially all of which is for a specific disease or illness, the plan isn’t an HDHP for purposes of establishing an HSA.

Prescription drug plans.

You can have a prescription drug plan, either as part of your HDHP or a separate plan (or rider), and qualify as an eligible individual if the plan doesn’t provide benefits until the minimum annual deductible of the HDHP has been met. If you can receive benefits before that deductible is met, you aren’t an eligible individual.

Other employee health plans.

An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses can’t generally make contributions to an HSA. FSAs and HRAs are discussed later.

However, an employee can make contributions to an HSA while covered under an HDHP and one or more of the following arrangements.

Limited-purpose health FSA or HRA. These arrangements can pay or reimburse the items listed earlier under Other health coverage except long-term care. Also, these arrangements can pay or reimburse preventive care expenses because they can be paid without having to satisfy the deductible.

Suspended HRA. Before the beginning of an HRA coverage period, you can elect to suspend the HRA. The HRA doesn’t pay or reimburse, at any time, the medical expenses incurred during the suspension period except preventive care and items listed under Other health coverage, earlier. When the suspension period ends, you are no longer eligible to make contributions to an HSA.

Post-deductible health FSA or HRA. These arrangements don’t pay or reimburse any medical expenses incurred before the minimum annual deductible amount is met. The deductible for these arrangements doesn’t have to be the same as the deductible for the HDHP, but benefits may not be provided before the minimum annual deductible amount is met.

Retiree-only HRA. This arrangement pays or reimburses only those medical expenses incurred after retirement. After retirement with such an HRA, you are no longer eligible to make contributions to an HSA.

Health FSA—grace period.

Coverage during a grace period by a general purpose health FSA is allowed if the balance in the health FSA at the end of its prior-year plan is zero. See Flexible Spending Arrangements (FSAs), later.

Contributions to an HSA

Any eligible individual can contribute to an HSA. For an employee’s HSA, the employee, the employee’s employer, or both may contribute to the employee’s HSA in the same year. For an HSA established by a self-employed (or unemployed) individual, the individual can contribute. Family members or any other person may also make contributions on behalf of an eligible individual.

Contributions to an HSA must be made in cash. Contributions of stock or property aren’t allowed.

Limit on Contributions

The amount you or any other person can contribute to your HSA depends on the type of HDHP coverage you have, your age, the date you become an eligible individual, and the date you cease to be an eligible individual. For 2024, if you have self-only HDHP coverage, you can contribute up to $4,150. If you have family HDHP coverage, you can contribute up to $8,300.

For 2025, if you have self-only HDHP coverage, you can contribute up to $4,300. If you have family HDHP coverage, you can contribute up to $8,550.

If you are, or were considered (under the last-month rule, discussed later), an eligible individual for the entire year and didn’t change your type of coverage, you can contribute the full amount based on your type of coverage. However, if you weren’t an eligible individual for the entire year or changed your coverage during the year, your contribution limit is the greater of:

The limitation shown on the Line﻿ ﻿3 Limitation Chart and Worksheet in the Instructions for Form 8889, Health Savings Accounts (HSAs); or

The maximum annual HSA contribution based on your HDHP coverage (self-only or family) on the first day of the last month of your tax year.

If you had family HDHP coverage on the first day of the last month of your tax year, your contribution limit for 2024 is $8,300 even if you changed coverage during the year.

Last-month rule.

Under the last-month rule, if you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers), you are considered an eligible individual for the entire year. You are treated as having the same HDHP coverage for the entire year as you had on the first day of the last month if you didn’t otherwise have coverage.

Testing period.

If contributions were made to your HSA based on you being an eligible individual for the entire year under the last-month rule, you must remain an eligible individual during the testing period. For the last-month rule, 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, 2024, through December 31, 2025).

If you fail to remain an eligible individual during the testing period, for reasons other than death or becoming disabled, you will have to include in income the total contributions made to your HSA that wouldn’t have been made except for the last-month rule. You include this amount in your income in the year in which you fail to be an eligible individual. This amount is also subject to a 10% additional tax. The income and additional tax are calculated on Form 8889, Part III.

Example 1. You, age 53, become an eligible individual on December 1, 2024. You have family HDHP coverage on that date. Under the last-month rule, you contribute $8,300 to your HSA.

You fail to be an eligible individual in June 2025. Because you didn’t remain an eligible individual during the testing period (December 1, 2024, through December 31, 2025), you must include in your 2025 income the contributions made for 2024 that wouldn’t have been made except for the last-month rule. You use the worksheet in the Form 8889 instructions to determine this amount.

January

-0-

February

-0-

March

-0-

April

-0-

May

-0-

June

-0-

July

-0-

August

-0-

September

-0-

October

-0-

November

-0-

December

$8,300.00

Total for all months

$8,300.00

Limitation. Divide the total by 12

$691.67

You would include $7,608.33 ($8,300.00 − $691.67) in your gross income on your 2025 tax return. Also, a 10% additional tax applies to this amount.

Example 2. You, age 39, have self-only HDHP coverage on January 1, 2024. You change to family HDHP coverage on November 1, 2024. Because you have family HDHP coverage on December 1, 2024, you contribute $8,300 for 2024.

You fail to be an eligible individual in March 2025. Because you didn’t remain an eligible individual during the testing period (December 1, 2024, through December 31, 2025), you must include in income the contribution made that wouldn’t have been made except for the last-month rule. You use the worksheet in the Form 8889 instructions to determine this amount.

January

$4,150.00

February

$4,150.00

March

$4,150.00

April

$4,150.00

May

$4,150.00

June

$4,150.00

July

$4,150.00

August

$4,150.00

September

$4,150.00

October

$4,150.00

November

$8,300.00

December

$8,300.00

Total for all months

$58,100.00

Limitation. Divide the total by 12

$4,841.67

You would include $3,458.33 ($8,300.00 − $4,841.67) in your gross income on your 2025 tax return. Also, a 10% additional tax applies to this amount.

Additional contribution.

If you are an eligible individual who is age 55 or older at the end of your tax year, your contribution limit is increased by $1,000. For example, if you have self-only coverage, you can contribute up to $5,150 (the contribution limit for self-only coverage ($4,150) plus the additional contribution of $1,000). However, see Enrolled in Medicare, later.

If you have more than one HSA in 2024, your total contributions to all the HSAs can’t be more than the limits discussed earlier.

Reduction of contribution limit.

You must reduce the amount that can be contributed (including any additional contribution) to your HSA by the amount of any contribution made to your Archer MSA (including employer contributions) for the year. A special rule applies to married people, discussed next, if each spouse has family coverage under an HDHP.

Rules for married people.

If either spouse has family HDHP coverage, both spouses are treated as having family HDHP coverage. If each spouse has family coverage under a separate plan, the contribution limit for 2024 is $8,300. You must reduce the limit on contributions, before taking into account any additional contributions, by the amount contributed to both spouses’ Archer MSAs. After that reduction, the contribution limit is split equally between the spouses unless you agree on a different division.

The rules for married people apply only if both spouses are eligible individuals.

If both spouses are 55 or older and not enrolled in Medicare, each spouse’s contribution limit is increased by the additional contribution. If both spouses meet the age requirement, the total contributions under family coverage can’t be more than $10,300. Each spouse must make the additional contribution to their own HSA.

Example. For 2024, you and your spouse are both eligible individuals. You each have family coverage under separate HDHPs. You are 58 years old and your spouse is 53. You and your spouse can split the family contribution limit ($8,300) equally or you can agree on a different division. If you split it equally, you can contribute $5,150 to an HSA (one-half the maximum contribution for family coverage ($4,150) + $1,000 additional contribution) and your spouse can contribute $4,150 to an HSA.

Employer contributions.

You must reduce the amount you, or any other person, can contribute to your HSA by the amount of any contributions made by your employer that are excludable from your income. This includes amounts contributed to your account by your employer through a cafeteria plan.

Enrolled in Medicare.

Beginning with the first month you are enrolled in Medicare, your contribution limit is zero. This rule applies to periods of retroactive Medicare coverage. So, if you delayed applying for Medicare and later your enrollment is backdated, any contributions to your HSA made during the period of retroactive coverage are considered excess. See Excess contributions, later.

Example. You turned age 65 in July 2024 and enrolled in Medicare. You had an HDHP with self-only coverage and are eligible for an additional contribution of $1,000. Your contribution limit is $2,575 ($5,150 × 6 ÷ 12).

Qualified HSA funding distribution.

A qualified HSA funding distribution may be made from your traditional IRA or Roth IRA to your HSA. This distribution can’t be made from an ongoing SEP IRA or SIMPLE IRA. For this purpose, a SEP IRA or SIMPLE IRA is ongoing if an employer contribution is made for the plan year ending with or within the tax year in which the distribution would be made.

The maximum qualified HSA funding distribution depends on the HDHP coverage (self-only or family) you have on the first day of the month in which the contribution is made and your age as of the end of the tax year. The distribution must be made directly by the trustee of the IRA to the trustee of the HSA. The distribution isn’t included in your income, isn’t deductible, and reduces the amount that can be contributed to your HSA. The qualified HSA funding distribution is shown on Form 8889 for the year in which the distribution is made.

You can generally make only one qualified HSA funding distribution during your lifetime. However, if you make a distribution during a month when you have self-only HDHP coverage, you can make another qualified HSA funding distribution in a later month in that tax year if you change to family HDHP coverage. The total qualified HSA funding distribution can’t be more than the contribution limit for family HDHP coverage plus any additional contribution to which you are entitled.

Example. In 2024, you are an eligible individual, age 57, with self-only HDHP coverage. You can make a qualified HSA funding distribution of $5,150 ($4,150 plus $1,000 additional contribution).

Funding distribution—testing period.

You must remain an eligible individual during the testing period. For a qualified HSA funding distribution, the testing period begins with the month in which the qualified HSA funding distribution is contributed and ends on the last day of the 12th month following that month. For example, if a qualified HSA funding distribution is contributed to your HSA on August 10, 2024, your testing period begins in August 2024, and ends on August 31, 2025.

If you fail to remain an eligible individual during the testing period, for reasons other than death or becoming disabled, you will have to include in income the qualified HSA funding distribution. 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. The income and the additional tax are calculated on Form 8889, Part III.

Each qualified HSA funding distribution allowed has its own testing period. For example, you are an eligible individual, age 45, with self-only HDHP coverage. On June 18, 2024, you make a qualified HSA funding distribution. On July 27, 2024, you enroll in family HDHP coverage and on August 17, 2024, you make a qualified HSA funding distribution. Your testing period for the first distribution begins in June 2024 and ends on June 30, 2025. Your testing period for the second distribution begins in August 2024 and ends on August 31, 2025.

The testing period rule that applies under the last-month rule (discussed earlier) doesn’t apply to amounts contributed to an HSA through a qualified HSA funding distribution. If you remain an eligible individual during the entire funding distribution testing period, then no amount of that distribution is included in income and won’t be subject to the additional tax for failing to meet the last-month rule testing period.

Rollovers

A rollover contribution isn’t included in your income, isn’t deductible, and doesn’t reduce your contribution limit.

Archer MSAs and other HSAs.

You can roll over amounts from Archer MSAs and other HSAs into an HSA. You don’t have to be an eligible individual to make a rollover contribution from your existing HSA to a new HSA. Rollover contributions don’t need to be in cash. Rollovers aren’t subject to the annual contribution limits.

You must roll over the amount within 60 days after the date of receipt. You can make only one rollover contribution to an HSA during a 1-year period.

Note. If you instruct the trustee of your HSA to transfer funds directly to the trustee of another of your HSAs, the transfer isn’t considered a rollover. There is no limit on the number of these transfers. Don’t include the amount transferred in income, deduct it as a contribution, or include it as a distribution on Form 8889.

When To Contribute

You can make contributions to your HSA for 2024 through April 15, 2025. If you fail to be an eligible individual during 2024, you can still make contributions through April 15, 2025, for the months you were an eligible individual.

Your employer can make contributions to your HSA from January 1, 2025, through April 15, 2025, that are allocated to 2024. Your employer must notify you and the trustee of your HSA that the contribution is for 2024. The contribution will be reported on your 2025 Form W-2, Wage and Tax Statement.

Reporting Contributions on Your Return

Contributions made by your employer aren’t included in your income. Contributions to an employee’s account by an employer using the amount of an employee’s salary reduction through a cafeteria plan are treated as employer contributions. Generally, you can claim contributions you made and contributions made by any other person, other than your employer, on your behalf, as a deduction.

Contributions by a partnership to a partner's HSA that are treated as distributions to the partner are not deductible by the partnership and do not affect the distributive shares of partnership income and deductions. These distributions are not included in the partner's net earnings from self-employment. The partner, if an eligible individual as defined in section 223(c)(1), is entitled to deduct the amount of the contributions made to the partner's HSA during the tax year as an adjustment to gross income on their federal income tax return. For more information, see Notice 2005﻿-﻿8, A-1, available at IRS.gov/irb/2005﻿-﻿04_IRB#NOT-2005﻿-﻿8.

Contributions by a partnership to a partner's HSA for services rendered to the partnership that are treated as guaranteed payments are deductible by the partnership and are includible in the partner's gross income. Because the contributions are guaranteed payments that are derived from the partnership's trade or business, and are for services rendered to the partnership, the contributions are included in the partner's net earnings from self-employment. The partner, if an eligible individual as defined in section 223(c)(1), is entitled to deduct the amount of the contributions made to the partner's HSA during the tax year as an adjustment to gross income on their federal income tax return. For more information, see Notice 2005﻿-﻿8, A-2, available at IRS.gov/irb/2005﻿-﻿04_IRB#NOT-2005﻿-﻿8.

Contributions by an S corporation to a 2% shareholder-employee’s HSA for services rendered are treated as guaranteed payments and are deductible by the S corporation and includible in the shareholder-employee’s gross income. The shareholder-employee can deduct the contribution made to the shareholder-employee’s HSA.

Form 8889.

Report all contributions to your HSA on Form 8889 and file it with your Form 1040, 1040-SR, or 1040-NR. You should include all contributions made for 2024, including those made from January 1, 2025, through April 15, 2025, that are designated for 2024. Contributions made by your employer and qualified HSA funding distributions are also shown on the form.

You should receive Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, from the trustee showing the amount contributed to your HSA during the year. Your employer’s contributions will also be shown on Form W-2, box 12, code W. Follow the Instructions for Form 8889. Report your HSA deduction on Form 1040, 1040-SR, or 1040-NR.

Excess contributions.

You will have excess contributions if the contributions to your HSA for the year are greater than the limits discussed earlier. Excess contributions aren’t deductible. Excess contributions made by your employer are included in your gross income. If the excess contribution isn’t included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return.

Generally, you must pay a 6% excise tax on excess contributions. See Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. The excise tax applies to each tax year the excess contribution remains in the account.

You may withdraw some or all of the excess contributions and avoid paying the excise tax on the amount withdrawn if you meet the following conditions.

You withdraw the excess contributions by the due date, including extensions, of your tax return for the year the contributions were made.

You 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.

If you fail to remain an eligible individual during any of the testing periods, discussed earlier, the amount you have to include in income isn’t an excess contribution. If you withdraw any of those amounts, the amount is treated the same as any other distribution from an HSA, discussed later.

Deducting an excess contribution in a later year.

You may be able to deduct excess contributions for previous years that are still in your HSA. The excess contribution you can deduct for the current year is the lesser of the following two amounts.

Your maximum HSA contribution limit for the year minus any amounts contributed to your HSA for the year.

The total excess contributions in your HSA at the beginning of the year.

Amounts contributed for the year include contributions by you, your employer, and any other person. They also include any qualified HSA funding distribution made to your HSA. Any excess contribution remaining at the end of a tax year is subject to the excise tax. See Form 5329.

Distributions From an HSA

You will generally pay medical expenses during the year without being reimbursed by your HDHP until you reach the annual deductible for the plan. When you pay medical expenses during the year that aren’t reimbursed by your HDHP, you can ask the trustee of your HSA to send you a distribution from your HSA.

You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA. If you receive distributions for other reasons, the amount you withdraw will be subject to income tax and may be subject to an additional 20% tax. You don’t have to make withdrawals from your HSA each year.

If you are no longer an eligible individual, you can still receive tax-free distributions to pay or reimburse your qualified medical expenses.

Generally, a distribution is money you get from your HSA. Your total distributions include amounts paid with a debit card and amounts withdrawn from the HSA by other individuals that you have designated. The trustee will report any distribution to you and the IRS on Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA.

Qualified medical expenses.

Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. These are explained in Pub. 502, Medical and Dental Expenses.

Amounts paid after 2019 for over-the-counter medicine (whether or not prescribed) and menstrual care products are considered medical care and are considered a covered expense.

For HSA purposes, expenses incurred before you establish your HSA aren’t qualified medical expenses. State law determines when an HSA is established. An HSA that is funded by amounts rolled over from an Archer MSA or another HSA is established on the date the prior account was established.

If, under the last-month rule, you are considered to be an eligible individual for the entire year for determining the contribution amount, only those expenses incurred after you actually establish your HSA are qualified medical expenses.

Qualified medical expenses are those incurred by the following persons.

You and your spouse.

All dependents you claim on your tax return.

Any person you could have claimed as a dependent on your return except that:

The person filed a joint return;

The person had gross income of $5,050 or more; or

You, or your spouse if filing jointly, could be claimed as a dependent on someone else’s 2024 return.

TipFor this purpose, a child of parents that are divorced, separated, or living apart for the last 6 months of the calendar year is treated as the dependent of both parents whether or not the custodial parent releases the claim to the child’s exemption.

You can’t deduct qualified medical expenses as an itemized deduction on Schedule﻿ ﻿A (Form 1040) that are equal to the tax-free distribution from your HSA.

Insurance premiums.

You can’t treat insurance premiums as qualified medical expenses unless the premiums are for any of the following.

Long-term care insurance.

Health care continuation coverage (such as coverage under COBRA).

Health care coverage while receiving unemployment compensation under federal or state law.

Medicare and other health care coverage if you were 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap).

The premiums for long-term care insurance (item (1)) that you can treat as qualified medical expenses are subject to limits based on age and are adjusted annually. See Limit on long-term care premiums you can deduct in the Instructions for Schedule﻿ ﻿A (Form 1040).

Items (2) and (3) can be for your spouse or a dependent meeting the requirement for that type of coverage. For item (4), if you, the account beneficiary, aren’t 65 or older, Medicare premiums for coverage of your spouse or a dependent (who is 65 or older) aren’t generally qualified medical expenses.

Deemed distributions from HSAs.

The following situations result in deemed taxable distributions from your HSA.

You engaged in any transaction prohibited by section 4975 with respect to any of your HSAs at any time in 2024. Your account ceases to be an HSA as of January 1, 2024, and you must include the fair market value of all assets in the account as of January 1, 2024, on Form 8889.

You used any portion of any of your HSAs as security for a loan at any time in 2024. You must include the fair market value of the assets used as security for the loan as income on Form 1040, 1040-SR, or 1040-NR.

Examples of prohibited transactions include the direct or indirect:

Sale, exchange, or leasing of property between you and the HSA;

Lending of money between you and the HSA;

Furnishing goods, services, or facilities between you and the HSA; and

Transfer to or use by you, or for your benefit, of any assets of the HSA.

Any deemed distributions won’t be treated as used to pay qualified medical expenses. These distributions are included in your income and are subject to the additional 20% tax, discussed later.

Recordkeeping. You must keep records sufficient to show that:

The distributions were exclusively to pay or reimburse qualified medical expenses,

The qualified medical expenses hadn’t been previously paid or reimbursed from another source, and

The medical expenses hadn’t been taken as an itemized deduction in any year.

 Don’t send these records with your tax return. Keep them with your tax records.

Reporting Distributions on Your Return

How you report your distributions depends on whether or not you use the distribution for qualified medical expenses (defined earlier).

If you use a distribution from your HSA for qualified medical expenses, you don’t pay tax on the distribution but you have to report the distribution on Form 8889. However, the distribution of an excess contribution taken out after the due date, including extensions, of your return is subject to tax even if used for qualified medical expenses. Follow the instructions for the form and file it with your Form 1040, 1040-SR, or 1040-NR.

If you don’t use a distribution from your HSA for qualified medical expenses, you must pay tax on the distribution. Report the amount on Form 8889 and file it with your Form 1040, 1040-SR, or 1040-NR. You may have to pay an additional 20% tax on your taxable distribution.

HSA administration and maintenance fees withdrawn by the trustee aren’t reported as distributions from the HSA.

Additional tax.

There is an additional 20% tax on the part of your distributions not used for qualified medical expenses. Figure the tax on Form 8889 and file it with your Form 1040, 1040-SR, or 1040-NR.

Exceptions.

There is no additional tax on distributions made after the date you are disabled, reach age 65, or die.

Balance in an HSA

An HSA is generally exempt from tax. You are permitted to take a distribution from your HSA at any time; however, only those amounts used exclusively to pay for qualified medical expenses are tax free. Amounts that remain at the end of the year are generally carried over to the next year (see Excess contributions, earlier). Earnings on amounts in an HSA aren’t included in your income while held in the HSA.

Death of HSA Holder

You should choose a beneficiary when you set up your HSA. What happens to that HSA when you die depends on whom you designate as the beneficiary.

Spouse is the designated beneficiary.

If your spouse is the designated beneficiary of your HSA, it will be treated as your spouse’s HSA after your death.

Spouse isn’t the designated beneficiary.

If your spouse isn’t the designated beneficiary of your HSA:

The account stops being an HSA, and

The fair market value of the HSA becomes taxable to the beneficiary in the year in which you die.

 If your estate is the beneficiary, the value is included on your final income tax return. The amount taxable to a beneficiary other than the estate is reduced by any qualified medical expenses for the decedent that are paid by the beneficiary within 1 year after the date of death.

Filing Form 8889

You must file Form 8889 with your Form 1040, 1040-SR, or 1040-NR if you (or your spouse, if married filing jointly) had any activity in your HSA during the year. You must file the form even if only your employer or your spouse’s employer made contributions to the HSA.

If, during the tax year, you are the beneficiary of two or more HSAs or you are a beneficiary of an HSA and you have your own HSA, you must complete a separate Form 8889 for each HSA. Enter “statement” at the top of each Form 8889 and complete the form as instructed. Next, complete a controlling Form 8889 combining the amounts shown on each of the statement Forms 8889. Attach the statements to your tax return after the controlling Form 8889.

Employer Participation

This section contains the rules that employers must follow if they decide to make HSAs available to their employees. Unlike the previous discussions, “you” refers to the employer and not to the employee.

Health plan.

If you want your employees to be able to have HSAs, they must have an HDHP. You can provide no additional coverage other than those exceptions listed earlier under Other health coverage.

Contributions.

You can make contributions to your employees’ HSAs. You deduct the contributions on your business income tax return for the year in which you make the contributions. If the contribution is allocated to the prior year, you still deduct it in the year in which you made the contribution.

For more information on employer contributions, see Notice 2008﻿-﻿59, 2008﻿-﻿29 I.R.B. 123, questions 23 through 27, available at IRS.gov/irb/2008﻿-﻿29_IRB/ar11.html.

Comparable contributions.

If you decide to make contributions, you must make comparable contributions to all comparable participating employees’ HSAs. Your contributions are comparable if they are either:

The same amount, or

The same percentage of the annual deductible limit under the HDHP covering the employees.

The comparability rules don’t apply to contributions made through a cafeteria plan.

Comparable participating employees.

Comparable participating employees:

Are covered by your HDHP and are eligible to establish an HSA,

Have the same category of coverage (either self-only or family coverage), and

Have the same category of employment (part-time, full-time, or former employees).

To meet the comparability requirements for eligible employees who have neither established an HSA by December 31 nor notified you that they have an HSA, you must meet a notice requirement and a contribution requirement.

You will meet the notice requirement if by January 15 of the following calendar year you provide a written notice to all such employees. The notice must state that each eligible employee who, by the last day of February, establishes an HSA and notifies you that the eligible employee has established an HSA will receive a comparable contribution to the HSA for the prior year. For a sample of the notice, see Regulations section 54.4980G-4 A-14(c). You will meet the contribution requirement for these employees if by April 15, 2025, you contribute comparable amounts plus reasonable interest to the employees’ HSAs for the prior year.

Note. For purposes of making contributions to HSAs of non-highly compensated employees, highly compensated employees may not be treated as comparable participating employees.

Excise tax.

If you made contributions to your employees’ HSAs that weren’t comparable, you must pay an excise tax of 35% of the amount you contributed.

Employment taxes.

Amounts you contribute to your employees’ HSAs aren’t generally subject to employment taxes. You must report the contributions (including amounts the employee elected to contribute through a cafeteria plan) on Form W-2, box 12, code W.

Medical Savings Accounts (MSAs)

Archer MSAs were created to help self-employed individuals and employees of certain small employers meet the medical care costs of the account holder, the account holder’s spouse, or the account holder’s dependent(s).

After 2007, you can’t be treated as an eligible individual for Archer MSA purposes unless:

You were an active participant for any tax year ending before 2008, or

You became an active participant for a tax year ending after 2007 by reason of coverage under a high deductible health plan (HDHP) of an Archer MSA participating employer.

A Medicare Advantage MSA is an Archer MSA designated by Medicare to be used solely to pay the qualified medical expenses of the account holder who is eligible for Medicare.

Archer MSAs

An Archer MSA is a tax-exempt trust or custodial account that you set up with a U.S. financial institution (such as a bank or an insurance company) in which you can save money exclusively for future medical expenses.

What are the benefits of an Archer MSA?

You may enjoy several benefits from having an Archer MSA.

You can claim a tax deduction for contributions you make even if you don’t itemize your deductions on Schedule﻿ ﻿A (Form 1040) or Schedule﻿ ﻿A (Form 1040-NR).

The interest or other earnings on the assets in your Archer MSA are tax free.

Distributions may be tax free if you pay qualified medical expenses. See Qualified medical expenses, later.

The contributions remain in your Archer MSA from year to year until you use them.

An Archer MSA is “portable,” so it stays with you if you change employers or leave the work force.

Qualifying for an Archer MSA

To qualify for an Archer MSA, you must be either of the following.

An employee (or the spouse of an employee) of a small employer (defined later) that maintains a self-only or family HDHP for you (or your spouse).

A self-employed person (or the spouse of a self-employed person) who maintains a self-only or family HDHP.

 You can have no other health or Medicare coverage except what is permitted under Other health coverage, later. You must be an eligible individual on the first day of a given month to get an Archer MSA deduction for that month.

If another taxpayer is entitled to claim you as a dependent, you can’t claim a deduction for an Archer MSA contribution. This is true even if the other person doesn’t receive an exemption deduction for you because the exemption amount is zero for tax years 2018 through 2025.

Small employer.

A small employer is generally an employer who had an average of 50 or fewer employees during either of the last 2 calendar years. The definition of small employer is modified for new employers and growing employers.

Growing employer.

A small employer may begin HDHPs and Archer MSAs for its employees and then grow beyond 50 employees. The employer will continue to meet the requirement for small employers if the employer:

Had 50 or fewer employees when the Archer MSAs began,

Made a contribution that was excludable or deductible as an Archer MSA for the last year the employer had 50 or fewer employees, and

Had an average of 200 or fewer employees each year after 1996.

Changing employers.

If you change employers, your Archer MSA moves with you. However, you may not make additional contributions unless you are otherwise eligible.

High deductible health plan (HDHP).

To be eligible to contribute to an Archer MSA, you must be covered under an HDHP. An HDHP has:

A higher annual deductible than typical health plans, and

A maximum limit on the annual out-of-pocket medical expenses that you must pay for covered expenses.

Limits.

The following table shows the limits for annual deductibles and the maximum out-of-pocket expenses for HDHPs for 2024.

Self-only coverage

Family coverage

Minimum annual deductible

$2,800

$5,550

Maximum annual deductible

$4,150

$8,350

Maximum annual out-of-pocket expenses

$5,550

$10,200

Family plans that don’t meet the high deductible rules.

There are some family plans that have deductibles for both the family as a whole and for individual family members. Under these plans, if you meet the individual deductible for one family member, you don’t have to meet the higher annual deductible amount for the family. If either the deductible for the family as a whole or the deductible for an individual family member is less than the minimum annual deductible for family coverage, the plan doesn’t qualify as an HDHP.

Other health coverage.

If you (and your spouse, if you have family coverage) have HDHP coverage, you can’t generally have any other health coverage. However, you can still be an eligible individual even if your spouse has non-HDHP coverage, provided you aren’t covered by that plan. However, you can have additional insurance that provides benefits only for the following items.

Liabilities incurred under workers’ compensation laws, torts, or ownership or use of property.

A specific disease or illness.

A fixed amount per day (or other period) of hospitalization.

 You can also have coverage (whether provided through insurance or otherwise) for the following items.

Accidents.

Disability.

Dental care.

Vision care.

Long-term care.

Contributions to an MSA

Contributions to an Archer MSA must be made in cash. You can’t contribute stock or other property to an Archer MSA.

Who can contribute to my Archer MSA?

If you are an employee, your employer may make contributions to your Archer MSA. (You don’t pay tax on these contributions.) If your employer doesn’t make contributions to your Archer MSA, or you are self-employed, you can make your own contributions to your Archer MSA. You and your employer can’t make contributions to your Archer MSA in the same year. You don’t have to make contributions to your Archer MSA every year.

CautionIf your spouse is covered by your HDHP and an excludable amount is contributed by your spouse’s employer to an Archer MSA belonging to your spouse, you can’t make contributions to your own Archer MSA that year.

Limits

There are two limits on the amount you or your employer can contribute to your Archer MSA.

The annual deductible limit.

An income limit.

Annual deductible limit.

You or your employer can contribute up to 75% of the annual deductible of your HDHP (65% if you have a self-only plan) to your Archer MSA. You must have the HDHP all year to contribute the full amount. If you don’t qualify to contribute the full amount for the year, determine your annual deductible limit by using the Line﻿ ﻿3 Limitation Chart and Worksheet in the Instructions for Form 8853, Archer MSAs and Long-Term Care Insurance Contracts.

Example 1. You have an HDHP for your family all year in 2024. The annual deductible is $6,000. You can contribute up to $4,500 ($6,000 × 75% (0.75)) to your Archer MSA for the year.

Example 2. You have an HDHP for your family for the entire period of July through December 2024 (6 months). The annual deductible is $6,000. You can contribute up to $2,250 ($6,000 × 75% (0.75) ÷ 12 × 6) to your Archer MSA for the year.

TipIf you and your spouse each have a family plan, you are treated as having family coverage with the lower annual deductible of the two health plans. The contribution limit is split equally between the two of you unless you agree on a different division.

Income limit.

You can’t contribute more than you earned for the year from the employer through whom you have your HDHP.

If you are self-employed, you can’t contribute more than your net self-employment income. This is your income from self-employment minus expenses (including the deductible part of self-employment tax).

Example 1. You earned $25,000 from TR Company in 2024. Through TR, you had an HDHP for your family for the entire year. The annual deductible was $6,000. You can contribute up to $4,500 to your Archer MSA (75% (0.75) × $6,000). You can contribute the full amount because you earned more than $4,500 at TR.

Example 2. You are self-employed. You had an HDHP for your family for the entire year in 2024. The annual deductible was $6,000. Based on the annual deductible, the maximum contribution to your Archer MSA would have been $4,500 (75% (0.75) × $6,000). However, after deducting your business expenses, your net self-employment income is $2,500 for the year. Therefore, you are limited to a contribution of $2,500.

Individuals enrolled in Medicare.

Beginning with the first month you are enrolled in Medicare, you can’t contribute to an Archer MSA. However, you may be eligible for a Medicare Advantage MSA, discussed later.

When To Contribute

You can make contributions to your Archer MSA for 2024 through April 15, 2025.

Reporting Contributions on Your Return

Report all contributions to your Archer MSA on Form 8853 and file it with your Form 1040, 1040-SR, or 1040-NR. You should include all contributions you or your employer made for 2024, including those made from January 1, 2025, through April 15, 2025, that are designated for 2024.

You should receive Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, from the trustee showing the amount you or your employer contributed during the year. Your employer’s contributions should be shown on Form W-2, box 12, code R. Follow the Instructions for Form 8853 and complete the Line﻿ ﻿3 Limitation Chart and Worksheet in the instructions. Report your Archer MSA deduction on Form 1040, 1040-SR, or 1040-NR.

Excess contributions.

You will have excess contributions if the contributions to your Archer MSA for the year are greater than the limits discussed earlier. Excess contributions aren’t deductible. Excess contributions made by your employer are included in your gross income. If the excess contribution isn’t included in Form W-2, box 1, you must report the excess as “Other income” on your tax return.

Generally, you must pay a 6% excise tax on excess contributions. See Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. The excise tax applies to each tax year the excess contribution remains in the account.

You may withdraw some or all of the excess contributions and avoid paying the excise tax on the amount withdrawn if you meet the following conditions.

You withdraw the excess contributions by the due date, including extensions, of your tax return.

You 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.

Deducting an excess contribution in a later year.

You may be able to deduct excess contributions for previous years that are still in your Archer MSA. The excess contribution you can deduct in the current year is the lesser of the following two amounts.

Your maximum Archer MSA contribution limit for the year minus any amounts contributed to your Archer MSA for the year.

The total excess contributions in your Archer MSA at the beginning of the year.

Any excess contributions remaining at the end of a tax year are subject to the excise tax. See Form 5329.

Distributions From an MSA

You will generally pay medical expenses during the year without being reimbursed by your HDHP until you reach the annual deductible for the plan. When you pay medical expenses during the year that aren’t reimbursed by your HDHP, you can ask the trustee of your Archer MSA to send you a distribution from your Archer MSA.

You can receive tax-free distributions from your Archer MSA to pay for qualified medical expenses (discussed later). If you receive distributions for other reasons, the amount will be subject to income tax and may be subject to an additional 20% tax as well. You don’t have to make withdrawals from your Archer MSA each year.

If you no longer qualify to make contributions, you can still receive tax-free distributions to pay or reimburse your qualified medical expenses.

A distribution is money you get from your Archer MSA. The trustee will report any distribution to you and the IRS on Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA.

Qualified medical expenses.

Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. These are explained in Pub. 502.

Amounts paid after 2019 for over-the-counter medicine (whether or not prescribed) and menstrual care products are considered medical care and are considered a covered expense.

Qualified medical expenses are those incurred by the following persons.

You and your spouse.

All dependents you claim on your tax return.

Any person you could have claimed as a dependent on your return except that:

The person filed a joint return;

The person had gross income of $5,050 or more; or

You, or your spouse if filing jointly, could be claimed as a dependent on someone else’s 2024 return.

TipFor this purpose, a child of parents that are divorced, separated, or living apart for the last 6 months of the calendar year is treated as the dependent of both parents whether or not the custodial parent releases the claim to the child’s exemption.

CautionYou can’t deduct qualified medical expenses as an itemized deduction on Schedule﻿ ﻿A (Form 1040) that are equal to the tax-free distribution from your Archer MSA.

Special rules for insurance premiums.

Generally, you can’t treat insurance premiums as qualified medical expenses for Archer MSAs. You can, however, treat premiums for long-term care coverage, health care coverage while you receive unemployment benefits, or health care continuation coverage required under any federal law as qualified medical expenses for Archer MSAs.

Deemed distributions from Archer MSAs.

The following situations result in deemed taxable distributions from your Archer MSA.

You engaged in any transaction prohibited by section 4975 with respect to any of your Archer MSAs at any time in 2024. Your account ceases to be an Archer MSA as of January 1, 2024, and you must include the fair market value of all assets in the account as of January 1, 2024, on Form 8853.

You used any portion of any of your Archer MSAs as security for a loan at any time in 2024. You must include the fair market value of the assets used as security for the loan as income on Form 1040, 1040-SR, or 1040-NR.

Examples of prohibited transactions include the direct or indirect:

Sale, exchange, or leasing of property between you and the Archer MSA;

Lending of money between you and the Archer MSA;

Furnishing goods, services, or facilities between you and the Archer MSA; and

Transfer to or use by you, or for your benefit, of any assets of the Archer MSA.

Any deemed distribution won’t be treated as used to pay qualified medical expenses. These distributions are included in your income and are subject to the additional 20% tax, discussed later.

Recordkeeping. You must keep records sufficient to show that:

The distributions were exclusively to pay or reimburse qualified medical expenses,

The qualified medical expenses hadn’t been previously paid or reimbursed from another source, and

The medical expenses hadn’t been taken as an itemized deduction in any year.

 Don’t send these records with your tax return. Keep them with your tax records.

Reporting Distributions on Your Return

How you report your distributions depends on whether or not you use the distribution for qualified medical expenses, defined earlier.

If you use a distribution from your Archer MSA for qualified medical expenses, you don’t pay tax on the distribution but you have to report the distribution on Form 8853. Follow the instructions for the form and file it with your Form 1040, 1040-SR, or 1040-NR.

If you don’t use a distribution from your Archer MSA for qualified medical expenses, you must pay tax on the distribution. Report the amount on Form 8853 and file it with your Form 1040, 1040-SR, or 1040-NR. You may have to pay an additional 20% tax, discussed later, on your taxable distribution.

If an amount (other than a rollover) is contributed to your Archer MSA this year (by you or your employer), you must also report and pay tax on a distribution you receive from your Archer MSA this year that is used to pay medical expenses of someone who isn’t covered by an HDHP, or is also covered by another health plan that isn’t an HDHP, at the time the expenses are incurred.

Rollovers.

Generally, any distribution from an Archer MSA that you roll over into another Archer MSA or an HSA isn’t taxable if you complete the rollover within 60 days. An Archer MSA and an HSA can receive only one rollover contribution during a 1-year period. See the Form 8853 instructions for more information.

Additional tax.

There is a 20% additional tax on the part of your distributions not used for qualified medical expenses. Figure the tax on Form 8853 and file it with your Form 1040, 1040-SR, or 1040-NR. Report the additional tax in the total on Form 1040, 1040-SR, or 1040-NR.

Exceptions.

There is no additional tax on distributions made after the date you are disabled, reach age 65, or die.

Balance in an Archer MSA

An Archer MSA is generally exempt from tax. You are permitted to take a distribution from your Archer MSA at any time; however, only those amounts used exclusively to pay for qualified medical expenses are tax free. Amounts that remain at the end of the year are generally carried over to the next year (see Excess contributions, earlier). Earnings on amounts in an Archer MSA aren’t included in your income while held in the Archer MSA.

Death of the Archer MSA Holder

You should choose a beneficiary when you set up your Archer MSA. What happens to that Archer MSA when you die depends on whom you designate as the beneficiary.

Spouse is the designated beneficiary.

If your spouse is the designated beneficiary of your Archer MSA, it will be treated as your spouse’s Archer MSA after your death.

Spouse isn’t the designated beneficiary.

If your spouse isn’t the designated beneficiary of your Archer MSA:

The account stops being an Archer MSA, and

The fair market value of the Archer MSA becomes taxable to the beneficiary in the year in which you die.

If your estate is the beneficiary, the fair market value of the Archer MSA will be included on your final income tax return.

The amount taxable to a beneficiary other than the estate is reduced by any qualified medical expenses for the decedent that are paid by the beneficiary within 1 year after the date of death.

Filing Form 8853

You must file Form 8853 with your Form 1040, 1040-SR, or 1040-NR if you (or your spouse, if married filing a joint return) had any activity in your Archer MSA during the year. You must file the form even if only your employer or your spouse’s employer made contributions to the Archer MSA.

If, during the tax year, you are the beneficiary of two or more Archer MSAs or you are a beneficiary of an Archer MSA and you have your own Archer MSA, you must complete a separate Form 8853 for each MSA. Enter “statement” at the top of each Form 8853 and complete the form as instructed. Next, complete a controlling Form 8853 combining the amounts shown on each of the statement Forms 8853. Attach the statements to your tax return after the controlling Form 8853.

Employer Participation

This section contains the rules that employers must follow if they decide to make Archer MSAs available to their employees. Unlike the previous discussions, “you” refers to the employer and not to the employee.

Health plan.

If you want your employees to be able to have Archer MSAs, you must make an HDHP available to them. You can provide no additional coverage other than those exceptions listed earlier under Other health coverage.

Contributions.

You can make contributions to your employees’ Archer MSAs and deduct them for the year in which you make them.

Comparable contributions.

If you decide to make contributions, you must make comparable contributions to all comparable participating employees’ Archer MSAs. Your contributions are comparable if they are either:

The same amount, or

The same percentage of the annual deductible limit under the HDHP covering the employees.

Comparable participating employees.

Comparable participating employees:

Are covered by your HDHP and are eligible to establish an Archer MSA,

Have the same category of coverage (either self-only or family coverage), and

Have the same category of employment (either part-time or full-time).

Excise tax.

If you made contributions to your employees’ Archer MSAs that weren’t comparable, you must pay an excise tax of 35% of the amount you contributed.

Employment taxes.

Amounts you contribute to your employees’ Archer MSAs aren’t generally subject to employment taxes. You must report the contributions on Form W-2, box 12, code R.

Medicare Advantage MSAs

A Medicare Advantage MSA is an Archer MSA designated by Medicare to be used solely to pay the qualified medical expenses of the account holder. To be eligible for a Medicare Advantage MSA, you must be enrolled in Medicare and have an HDHP that meets the Medicare guidelines.

A Medicare Advantage MSA is a tax-exempt trust or custodial savings account that you set up with a financial institution (such as a bank or an insurance company) in which the Medicare program can deposit money for qualified medical expenses. The money in your account isn’t taxed if it is used for qualified medical expenses, and it may earn interest or dividends.

An HDHP is a special health insurance policy that has a high deductible. You choose the policy you want to use as part of your Medicare Advantage MSA plan. However, the policy must be approved by the Medicare program.

Medicare Advantage MSAs are administered through the federal Medicare program. You can get information by calling 800-MEDICARE (800﻿-﻿633﻿-﻿4227) or through the Internet at Medicare.gov.

Note. See the Instructions for Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, to learn whether you must file Form 8853.

Flexible Spending Arrangements (FSAs)

 A health FSA allows employees to be reimbursed for medical expenses. FSAs are usually funded through voluntary salary reduction agreements with your employer. No employment or federal income taxes are deducted from your contribution. The employer may also contribute.

Note. Unlike HSAs or Archer MSAs, which must be reported on Form 1040, 1040-SR, or 1040-NR, there are no reporting requirements for FSAs on your income tax return.

For information on the interaction between a health FSA and an HSA, see Other employee health plans under Qualifying for an HSA, earlier.

What are the benefits of an FSA?

You may enjoy several benefits from having an FSA.

Contributions made by your employer can be excluded from your gross income.

No employment or federal income taxes are deducted from the contributions.

Reimbursements may be tax free if you pay qualified medical expenses. See Qualified medical expenses, later.

You can use an FSA to pay qualified medical expenses even if funds have not yet been credited to the arrangement.

Qualifying for an FSA

Health FSAs are employer-established benefit plans. These may be offered in conjunction with other employer-provided benefits as part of a cafeteria plan. Employers have flexibility to offer various combinations of benefits in designing their plans.

Self-employed persons aren’t eligible for FSAs.

Certain limitations may apply if you are a highly compensated participant or a key employee.

Contributions to an FSA

You contribute to your FSA by electing an amount to be voluntarily withheld from your pay by your employer. This is sometimes called a “salary reduction agreement.” The employer may also contribute to your FSA if specified in the plan.

You don’t pay federal income tax or employment taxes on the salary you contribute or the amounts your employer contributes to the FSA. However, contributions made by your employer to provide coverage for long-term care insurance must be included in income.

When To Contribute

At the beginning of the plan year, you must designate how much you want to contribute. Then, your employer will deduct amounts periodically (generally, every payday) in accordance with your annual election. You can change or revoke your election only if specifically allowed by law and the plan.

Amount of Contribution

For 2024, salary reduction contributions to a health FSA can’t be more than $3,200 a year (or any lower amount set by the plan). This amount is indexed for inflation and may change from year to year.

Generally, contributed amounts that aren’t spent by the end of the plan year are forfeited. However, see Balance in an FSA, later, for possible exceptions. For this reason, it is important to base your contribution on an estimate of the qualifying expenses you will have during the year.

Distributions From an FSA

Generally, distributions from a health FSA must be paid only to reimburse you for qualified medical expenses you incurred during the period of coverage. You must be able to receive the maximum amount of reimbursement (the amount you have elected to contribute for the year) at any time during the coverage period, regardless of the amount you have actually contributed. The maximum amount you can receive tax free is the total amount you elected to contribute to the health FSA for the year.

You must provide the health FSA with a written statement from an independent third party stating that the medical expense has been incurred and the amount of the expense. You must also provide a written statement that the expense hasn’t been paid or reimbursed under any other health plan coverage. The FSA can’t make advance reimbursements of future or projected expenses.

Debit cards, credit cards, and stored value cards given to you by your employer can be used to reimburse participants in a health FSA. If the use of these cards meets certain substantiation methods, you may not have to provide additional information to the health FSA. For information on these methods, see Revenue Ruling 2003﻿-﻿43, 2003﻿-﻿21 I.R.B. 935, available at IRS.gov/pub/irs-drop/rr-03﻿-﻿43.pdf; Notice 2006﻿-﻿69, 2006﻿-﻿31 I.R.B. 107, available at IRS.gov/irb/2006﻿-﻿31_IRB/ar10.html; and Notice 2007﻿-﻿2, 2007﻿-﻿2 I.R.B. 254, available at IRS.gov/irb/2007﻿-﻿02_IRB/ar09.html.

Qualified medical expenses.

Qualified medical expenses are those specified in the plan that would generally qualify for the medical and dental expenses deduction. These are explained in Pub. 502.

Expenses incurred after December 31, 2019, for over-the-counter medicine (whether or not prescribed) and menstrual care products are considered medical care and are considered a covered expense.

Qualified medical expenses are those incurred by the following persons.

You and your spouse.

All dependents you claim on your tax return.

Any person you could have claimed as a dependent on your return except that:

The person filed a joint return;

The person had gross income of $5,050 or more; or

You, or your spouse if filing jointly, could be claimed as a dependent on someone else’s 2024 return.

Your child under age 27 at the end of your tax year.

You can’t receive distributions from your FSA for the following expenses.

Amounts paid for health insurance premiums.

Amounts paid for long-term care coverage or expenses.

Amounts that are covered under another health plan.

If you are covered under both a health FSA and an HRA, see Notice 2002﻿-﻿45, Part V, 2002﻿-﻿28 I.R.B. 93, available at IRS.gov/pub/irs-drop/n-02﻿-﻿45.pdf.

CautionYou can’t deduct qualified medical expenses as an itemized deduction on Schedule﻿ ﻿A (Form 1040) that are equal to the reimbursement you receive from the FSA.

Qualified reservist distribution.

A special rule allows amounts in a health FSA to be distributed to reservists ordered or called to active duty. This rule applies to distributions made after June 17, 2008, if the plan has been amended to allow these distributions. Your employer must report the distribution as wages on your Form W-2 for the year in which the distribution is made. The distribution is subject to employment taxes and is included in your gross income.

A qualified reservist distribution is allowed if you were (because you were in the reserves) ordered or called to active duty for a period of more than 179 days or for an indefinite period, and the distribution is made during the period beginning on the date of the order or call and ending on the last date that reimbursements could otherwise be made for the plan year that includes the date of the order or call.

Balance in an FSA

FSAs are generally "use-it-or-lose-it" plans. This means that amounts in the account at the end of the plan year can't generally be carried over to the next year. However, the plan can provide for either a grace period or a carryover.

 The plan can provide for a grace period of up to 2 1/2 months after the end of the plan year. If there is a grace period, any qualified medical expenses incurred in that period can be paid from any amounts left in the account at the end of the previous year. Your employer isn't permitted to refund any part of the balance to you. See Qualified reservist distributions, earlier.

 Plans may allow up to $640 of unused amounts remaining at the end of the plan year to be paid or reimbursed for qualified medical expenses you incur in the following plan year. The plan may specify a lower dollar amount as the maximum carryover amount. If the plan permits a carryover, any unused amounts in excess of the carryover amount are forfeited. The carryover doesn't affect the maximum amount of salary reduction contributions that you are permitted to make.

 A plan may allow either the grace period or a carryover, but it may not allow both.

Employer Participation

For the health FSA to maintain tax-qualified status, employers must comply with certain requirements that apply to cafeteria plans. For example, there are restrictions for plans that cover highly compensated employees and key employees. The plans must also comply with rules applicable to other accident and health plans. Pub. 15-B, Employer’s Tax Guide to Fringe Benefits, explains these requirements.

Health Reimbursement Arrangements (HRAs)

An HRA must be funded solely by an employer. The contribution can’t be paid through a voluntary salary reduction agreement on the part of an employee. Employees are reimbursed tax free for qualified medical expenses up to a maximum dollar amount for a coverage period. An HRA may be offered with other health plans, including FSAs.

Note. Unlike HSAs or Archer MSAs, which must be reported on Form 1040, 1040-SR, or 1040-NR, there are no reporting requirements for HRAs on your income tax return.

For information on the interaction between an HRA and an HSA, see Other employee health plans under Qualifying for an HSA, earlier.

What are the benefits of an HRA?

You may enjoy several benefits from having an HRA.

Contributions made by your employer can be excluded from your gross income.

Reimbursements, which must be for qualified medical expenses, are tax free. See Qualified medical expenses, later.

Any unused amounts in the HRA can be carried forward for reimbursements in later years.

Qualifying for an HRA

HRAs are employer-established benefit plans. These may be offered in conjunction with other employer-provided health benefits. Employers have complete flexibility to offer various combinations of benefits in designing their plans.

Self-employed persons aren’t eligible for HRAs.

Certain limitations may apply if you are a highly compensated participant.

Contributions to an HRA

HRAs are funded solely through employer contributions and may not be funded through employee salary reductions under a cafeteria plan. These contributions aren’t included in the employee’s income. You don’t pay federal income tax or employment taxes on amounts your employer contributes to the HRA.

Amount of Contribution

There is no limit on the amount of money your employer can contribute to the arrangements. Additionally, the maximum reimbursement amount credited under the HRA in the future (not including amounts carried forward from previous coverage periods) may be increased or decreased. See Balance in an HRA, later.

Distributions From an HRA

Generally, distributions from an HRA must be paid to reimburse you for qualified medical expenses you have incurred. The expense must have been incurred on or after the date you are enrolled in the HRA.

Debit cards, credit cards, and stored value cards given to you by your employer can be used to reimburse participants in an HRA. If the use of these cards meets certain substantiation methods, you may not have to provide additional information to the HRA. For information on these methods, see Revenue Ruling 2003﻿-﻿43, 2003﻿-﻿21 I.R.B. 935, available at IRS.gov/pub/irs-drop/rr-03﻿-﻿43.pdf; Notice 2006﻿-﻿69, 2006﻿-﻿31 I.R.B. 107, available at IRS.gov/irb/2006﻿-﻿31_IRB/ar10.html; and Notice 2007﻿-﻿2, 2007﻿-﻿2 I.R.B. 254, available at IRS.gov/irb/2007﻿-﻿02_IRB/ar09.html.

If any distribution is, or can be, made for other than the reimbursement of qualified medical expenses, any distribution (including reimbursement of qualified medical expenses) made in the current tax year is included in gross income. For example, if an unused reimbursement is payable to you in cash at the end of the year, or upon termination of your employment, any distribution from the HRA is included in your income. This also applies if any unused amount upon your death is payable in cash to your beneficiary or estate, or if the HRA provides an option for you to transfer any unused reimbursement at the end of the year to a retirement plan.

If the plan permits amounts to be paid as medical benefits to a designated beneficiary (other than the employee’s spouse or dependents), any distribution from the HRA is included in income.

Reimbursements under an HRA can be made to the following persons.

Current and former employees.

Spouses and dependents of those employees.

Any person you could have claimed as a dependent on your return except that:

The person filed a joint return;

The person had gross income of $5,050 or more; or

You, or your spouse if filing jointly, could be claimed as a dependent on someone else’s 2024 return.

Your child under age 27 at the end of your tax year.

Spouses and dependents of deceased employees.

For this purpose, a child of parents that are divorced, separated, or living apart for the last 6 months of the calendar year is treated as the dependent of both parents whether or not the custodial parent releases the claim to the child’s exemption.

Qualified medical expenses.

Qualified medical expenses are those specified in the plan that would generally qualify for the medical and dental expenses deduction. These are explained in Pub. 502.

Expenses incurred after December 31, 2019, for over-the-counter medicine (whether or not prescribed) and menstrual care products are considered medical care and are considered a covered expense.

Qualified medical expenses from your HRA include the following.

Amounts paid for health insurance premiums.

Amounts paid for long-term care coverage.

Medical expenses that aren’t covered under another health plan.

If you are covered under both an HRA and a health FSA, see Notice 2002﻿-﻿45, Part V, which is available at IRS.gov/pub/irs-drop/n-02﻿-﻿45.pdf.

CautionYou can’t deduct qualified medical expenses as an itemized deduction on Schedule﻿ ﻿A (Form 1040) that are equal to the distribution from the HRA.

Balance in an HRA

Some, but not all, HRAs permit amounts that remain at the end of the year to be carried to the next year. Your employer isn’t permitted to refund any part of the balance to you. These amounts may never be used for anything but reimbursements for qualified medical expenses.

Employer Participation

For an HRA to maintain tax-qualified status, employers must comply with certain requirements that apply to other accident and health plans. Pub. 15-B, Employer’s Tax Guide to Fringe Benefits, explains these requirements.

How To Get Tax Help

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, forms, or instructions, go to IRS.gov to find resources that can help you right away.

Preparing and filing your tax return.

After receiving all your wage and earnings statements (Forms W-2, W-2G, 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment compensation statements (by mail or in a digital format) or other government payment statements (Form 1099-G); and interest, dividend, and retirement statements from banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you qualify for free tax preparation, or hire a tax professional to prepare your return.

Free options for tax preparation.

Your options for preparing and filing your return online or in your local community, if you qualify, include the following.

Direct File. Direct File is a permanent option to file individual federal tax returns online—for free—directly and securely with the IRS. Direct File is an option for taxpayers in participating states who have relatively simple tax returns reporting certain types of income and claiming certain credits and deductions. While Direct File doesn't prepare state returns, if you live in a participating state, Direct File guides you to a state-supported tool you can use to prepare and file your state tax return for free. Go to IRS.gov/DirectFile for more information, program updates, and frequently asked questions.

Free File. This program lets you prepare and file your federal individual income tax return for free using software or Free File Fillable Forms. However, state tax preparation may not be available through Free File. Go to IRS.gov/FreeFile to see if you qualify for free online federal tax preparation, e-filing, and direct deposit or payment options.

VITA. The Volunteer Income Tax Assistance (VITA) program offers free tax help to people with low-to-moderate incomes, persons with disabilities, and limited-English-speaking taxpayers who need help preparing their own tax returns. Go to IRS.gov/VITA, download the free IRS2Go app, or call 800﻿-﻿906﻿-﻿9887 for information on free tax return preparation.

TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. Go to IRS.gov/TCE or download the free IRS2Go app for information on free tax return preparation.

MilTax. Members of the U.S. Armed Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military OneSource. For more information, go to MilitaryOneSource (MilitaryOneSource.mil/MilTax).Also, the IRS offers Free Fillable Forms, which can be completed online and then e-filed regardless of income.

Using online tools to help prepare your return.

Go to IRS.gov/Tools for the following.

IRS.gov/DirectFile offers an Eligibility Checker to help you determine if Direct File is the right choice for your tax filing needs.

The Earned Income Tax Credit Assistant (IRS.gov/EITCAssistant) determines if you’re eligible for the earned income credit (EIC).

The Online EIN Application (IRS.gov/EIN) helps you get an employer identification number (EIN) at no cost.

The Tax Withholding Estimator (IRS.gov/W4App) makes it easier for you to estimate the federal income tax you want your employer to withhold from your paycheck. This is tax withholding. See how your withholding affects your refund, take-home pay, or tax due.

The First-Time Homebuyer Credit Account Look-up (IRS.gov/HomeBuyer) tool provides information on your repayments and account balance.

The Sales Tax Deduction Calculator (IRS.gov/SalesTax) figures the amount you can claim if you itemize deductions on Schedule﻿ ﻿A (Form 1040).

Getting answers to your tax questions.On IRS.gov, you can get up-to-date information on current events and changes in tax law.

IRS.gov/Help: A variety of tools to help you get answers to some of the most common tax questions.

IRS.gov/ITA: The Interactive Tax Assistant, a tool that will ask you questions and, based on your input, provide answers on a number of tax topics.

IRS.gov/Forms: Find forms, instructions, and publications. You will find details on the most recent tax changes and interactive links to help you find answers to your questions.

You may also be able to access tax information in your e-filing software.

Need someone to prepare your tax return?

There are various types of tax return preparers, including enrolled agents, certified public accountants (CPAs), accountants, and many others who don’t have professional credentials. If you choose to have someone prepare your tax return, choose that preparer wisely. A paid tax preparer is:

Primarily responsible for the overall substantive accuracy of your return,

Required to sign the return, and

Required to include their preparer tax identification number (PTIN).

Although the tax preparer always signs the return, you're ultimately responsible for providing all the information required for the preparer to accurately prepare your return and for the accuracy of every item reported on the return. Anyone paid to prepare tax returns for others should have a thorough understanding of tax matters. For more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov.

Employers can register to use Business Services Online.

The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure W-2 filing options to CPAs, accountants, enrolled agents, and individuals who process Form W-2, Wage and Tax Statement; and Form W-2c, Corrected Wage and Tax Statement.

Business tax account.

If you are a sole proprietor, a partnership, or an S corporation, you can view your tax information on record with the IRS and do more with a business tax account. Go to IRS.gov/Business-Tax-Account for more information.

IRS social media.

Go to IRS.gov/SocialMedia to see the various social media tools the IRS uses to share the latest information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our highest priority. We use these tools to share public information with you. Don’t post your social security number (SSN) or other confidential information on social media sites. Always protect your identity when using any social networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, Spanish, and ASL.

Youtube.com/irsvideos.

Youtube.com/irsvideosmultilingua.

Youtube.com/irsvideosASL.

Online tax information in other languages.

You can find information on IRS.gov/MyLanguage if English isn’t your native language.

Free Over-the-Phone Interpreter (OPI) Service.

The IRS is committed to serving taxpayers with limited-English proficiency (LEP) by offering OPI services. The OPI Service is a federally funded program and is available at Taxpayer Assistance Centers (TACs), most IRS offices, and every VITA/TCE tax return site. The OPI Service is accessible in more than 350 languages.

Accessibility Helpline available for taxpayers with disabilities.

Taxpayers who need information about accessibility services can call 833﻿-﻿690﻿-﻿0598. The Accessibility Helpline can answer questions related to current and future accessibility products and services available in alternative media formats (for example, braille, large print, audio, etc.). The Accessibility Helpline does not have access to your IRS account. For help with tax law, refunds, or account-related issues, go to IRS.gov/LetUsHelp.

Alternative media preference.

Form 9000, Alternative Media Preference, or Form 9000(SP) allows you to elect to receive certain types of written correspondence in the following formats.

Standard Print.

Large Print.

Braille.

Audio (MP3).

Plain Text File (TXT).

Braille Ready File (BRF).

Disasters.

Go to IRS.gov/DisasterRelief to review the available disaster tax relief.

Getting tax forms and publications.

Go to IRS.gov/Forms to view, download, or print all the forms, instructions, and publications you may need. Or, you can go to IRS.gov/OrderForms to place an order.

Mobile-friendly forms.

You'll need an IRS Online Account (OLA) to complete mobile-friendly forms that require signatures. You'll have the option to submit your form(s) online or download a copy for mailing. You'll need scans of your documents to support your submission. Go to IRS.gov/MobileFriendlyForms for more information.

Getting tax publications and instructions in eBook format.

Download and view most tax publications and instructions (including the Instructions for Form 1040) on mobile devices as eBooks at IRS.gov/eBooks.

IRS eBooks have been tested using Apple's iBooks for iPad. Our eBooks haven’t been tested on other dedicated eBook readers, and eBook functionality may not operate as intended.

Access your online account (individual taxpayers only).

Go to IRS.gov/Account to securely access information about your federal tax account.

View the amount you owe and a breakdown by tax year.

See payment plan details or apply for a new payment plan.

Make a payment or view 5 years of payment history and any pending or scheduled payments.

Access your tax records, including key data from your most recent tax return, and transcripts.

View digital copies of select notices from the IRS.

Approve or reject authorization requests from tax professionals.

View your address on file or manage your communication preferences.

Get a transcript of your return.

With an online account, you can access a variety of information to help you during the filing season. You can get a transcript, review your most recently filed tax return, and get your adjusted gross income. Create or access your online account at IRS.gov/Account.

Tax Pro Account.

This tool lets your tax professional submit an authorization request to access your individual taxpayer IRS OLA. For more information, go to IRS.gov/TaxProAccount.

Using direct deposit.

The safest and easiest way to receive a tax refund is to e-file and choose direct deposit, which securely and electronically transfers your refund directly into your financial account. Direct deposit also avoids the possibility that your check could be lost, stolen, destroyed, or returned undeliverable to the IRS. Eight in 10 taxpayers use direct deposit to receive their refunds. If you don’t have a bank account, go to IRS.gov/DirectDeposit for more information on where to find a bank or credit union that can open an account online.

Reporting and resolving your tax-related identity theft issues.

Tax-related identity theft happens when someone steals your personal information to commit tax fraud. Your taxes can be affected if your SSN is used to file a fraudulent return or to claim a refund or credit.

The IRS doesn’t initiate contact with taxpayers by email, text messages (including shortened links), telephone calls, or social media channels to request or verify personal or financial information. This includes requests for personal identification numbers (PINs), passwords, or similar information for credit cards, banks, or other financial accounts.

Go to IRS.gov/IdentityTheft, the IRS Identity Theft Central webpage, for information on identity theft and data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or stolen or you suspect you’re a victim of tax-related identity theft, you can learn what steps you should take.

Get an Identity Protection PIN (IP PIN). IP PINs are six-digit numbers assigned to taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN. To learn more, go to IRS.gov/IPPIN.

Ways to check on the status of your refund.

Go to IRS.gov/Refunds.

Download the official IRS2Go app to your mobile device to check your refund status.

Call the automated refund hotline at 800﻿-﻿829﻿-﻿1954.

The IRS can’t issue refunds before mid-February for returns that claimed the EIC or the additional child tax credit (ACTC). This applies to the entire refund, not just the portion associated with these credits.

Making a tax payment.

Payments of U.S. tax must be remitted to the IRS in U.S. dollars. Digital assets are not accepted. Go to IRS.gov/Payments for information on how to make a payment using any of the following options.

IRS Direct Pay: Pay your individual tax bill or estimated tax payment directly from your checking or savings account at no cost to you.

Debit Card, Credit Card, or Digital Wallet: Choose an approved payment processor to pay online or by phone.

Electronic Funds Withdrawal: Schedule a payment when filing your federal taxes using tax return preparation software or through a tax professional.

Electronic Federal Tax Payment System: This is the best option for businesses. Enrollment is required.

Check or Money Order: Mail your payment to the address listed on the notice or instructions.

Cash: You may be able to pay your taxes with cash at a participating retail store.

Same-Day Wire: You may be able to do same-day wire from your financial institution. Contact your financial institution for availability, cost, and time frames.

Note. The IRS uses the latest encryption technology to ensure that the electronic payments you make online, by phone, or from a mobile device using the IRS2Go app are safe and secure. Paying electronically is quick, easy, and faster than mailing in a check or money order.

What if I can’t pay now?

Go to IRS.gov/Payments for more information about your options.

Apply for an online payment agreement (IRS.gov/OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved.

Use the Offer in Compromise Pre-Qualifier to see if you can settle your tax debt for less than the full amount you owe. For more information on the Offer in Compromise program, go to IRS.gov/OIC.

Filing an amended return.

Go to IRS.gov/Form1040X for information and updates.

Checking the status of your amended return.

Go to IRS.gov/WMAR to track the status of Form 1040-X amended returns.

It can take up to 3 weeks from the date you filed your amended return for it to show up in our system, and processing it can take up to 16 weeks.

Understanding an IRS notice or letter you’ve received.

Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

IRS Document Upload Tool.

You may be able use the Document Upload Tool to respond digitally to eligible IRS notices and letters by securely uploading required documents online through IRS.gov. For more information, go to IRS.gov/DUT.

Schedule﻿ ﻿LEP.

You can use Schedule﻿ ﻿LEP (Form 1040), Request for Change in Language Preference, to state a preference to receive notices, letters, or other written communications from the IRS in an alternative language. You may not immediately receive written communications in the requested language. The IRS’s commitment to LEP taxpayers is part of a multi-year timeline that began providing translations in 2023. You will continue to receive communications, including notices and letters, in English until they are translated to your preferred language.

Contacting your local TAC.

Keep in mind, many questions can be answered on IRS.gov without visiting a TAC. Go to IRS.gov/LetUsHelp for the topics people ask about most. If you still need help, TACs provide tax help when a tax issue can’t be handled online or by phone. All TACs now provide service by appointment, so you’ll know in advance that you can get the service you need without long wait times. Before you visit, go to IRS.gov/TACLocator to find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

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Below is a message to you from the Taxpayer Advocate Service, an independent organization established by Congress.

The Taxpayer Advocate Service (TAS) Is Here To Help You

What Is the Taxpayer Advocate Service?

The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS). TAS helps taxpayers resolve problems with the IRS, makes administrative and legislative recommendations to prevent or correct the problems, and protects taxpayer rights. We work to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights. We are Your Voice at the IRS.

How Can TAS Help Me?

TAS can help you resolve problems that you haven’t been able to resolve with the IRS on your own. Always try to resolve your problem with the IRS first, but if you can’t, then come to TAS. Our services are free.

TAS helps all taxpayers (and their representatives), including individuals, businesses, and exempt organizations. You may be eligible for TAS help if your IRS problem is causing financial difficulty, if you’ve tried and been unable to resolve your issue with the IRS, or if you believe an IRS system, process, or procedure just isn't working as it should.

To get help any time with general tax topics, visit www.TaxpayerAdvocate.IRS.gov. The site can help you with common tax issues and situations, such as what to do if you make a mistake on your return or if you get a notice from the IRS.

TAS works to resolve large-scale (systemic) problems that affect many taxpayers. You can report systemic issues at www.IRS.gov/SAMS. (Be sure not to include any personal identifiable information.)

How Do I Contact TAS?

TAS has offices in every state, the District of Columbia, and Puerto Rico. To find your local advocate’s number:

Go to www.TaxpayerAdvocate.IRS.gov/Contact-Us,

Check your local directory, or

Call TAS toll free at 877﻿-﻿777﻿-﻿4778.

What Are My Rights as a Taxpayer?

The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when dealing with the IRS. Go to www.TaxpayerAdvocate.IRS.gov/Taxpayer-Rights for more information about the rights, what they mean to you, and how they apply to specific situations you may encounter with the IRS. TAS strives to protect taxpayer rights and ensure the IRS is administering the tax law in a fair and equitable way.

Index

A | C | D | E | F | H | M | P | Q | T

A

Archer MSAs Archer MSAs, Employment taxes.

Assistance (See Tax help)

C

Contributions to:

FSA Contributions to an﻿…

HRA Contributions to an﻿…

HSA Contributions to an﻿…

MSA Contributions to an﻿…

D

Death of:

HSA holder Death of HSA Holder

MSA holder Death of the Archer﻿…

Distributions from:

FSA Distributions From an﻿…

HRA Distributions From an﻿…

HSA Distributions From an﻿…

MSA Distributions From an﻿…

E

Employer participation:

FSA Employer Participation

HRA Employer Participation

HSA Employer Participation

MSA Employer Participation

F

Flexible spending arrangements Flexible Spending Arrangements﻿…, Employer Participation

Balance in Balance in an FSA

Contributions to Contributions to an﻿…

Distributions from Distributions From an﻿…

Grace period Balance in an FSA

Qualifying for Qualifying for an FSA

When to contribute When To Contribute

Form:

5329 Excess contributions﻿…

5498–SA Form 8889. , Reporting Contributions﻿…

8853 Additional tax., Filing Form 8853

8889 Form 8889. , Additional tax., Filing Form 8889

H

Health plans, high deductible High deductible health﻿…

Health reimbursement arrangements Health Reimbursement﻿…, Employer Participation

Balance in Balance in an HRA

Contributions to Contributions to an﻿…

Distributions from Distributions From an﻿…

Qualifying for Qualifying for an HRA

Health savings accounts Health Savings Accounts﻿…, Employment taxes.

Balance in Balance in an HSA

Contributions to Contributions to an﻿…

Deemed distributions Deemed distributions﻿…

Distributions from Distributions From an﻿…

Last-month rule Last-month rule.

Partnerships Reporting Contributions﻿…

Qualifying for Qualifying for an HSA﻿…

Rollovers Rollovers

S corporations Reporting Contributions﻿…

When to contribute When To Contribute

High deductible health plan High deductible health﻿…

M

Medical expenses, qualified Qualified medical expenses﻿…, Qualified medical expenses

Medical savings accounts Medical Savings Accounts﻿…, Note.

Balance in Balance in an Archer﻿…

Contributions to Contributions to an﻿…

Deemed distributions Deemed distributions﻿…

Distributions from Distributions From an﻿…

Medicare Advantage MSAs Medicare Advantage MSAs

Qualifying for Qualifying for an Archer﻿…

When to contribute When To Contribute

Medicare Advantage MSAs Medicare Advantage MSAs

P

Preventive care High deductible health﻿…

Publications (See Tax help)

Q

Qualified HSA funding distribution Qualified HSA funding﻿…

T

Tax help How To Get Tax Help

Testing period:

Last-month rule Testing period.

Qualified HSA funding distribution Funding distribution—testing﻿…