Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Health Savings Accounts (HSA)

Reporting HSA Contributions, Distributions, and Deductions

Form 8889, Part III

There are consequences when a taxpayer fails to maintain HDHP coverage. Form 8889, is used to figure any income and additional tax that must be reported on Form 1040 for failure to be an eligible individual during the testing period for:

  • Last-month rule
  • A qualified HSA funding distribution

See the Form 8889 Instructions and refer affected taxpayers to a professional tax preparer. This information is provided for your awareness. Form 8889, Part III, is out of scope for the VITA/TCE programs.

Form 8889, Part III.
Form 8889

Form 8889