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Amendment To Tax Return

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Amendment To Tax Return

Amendment to tax return Index Symbols "Hours of service" limits, Individuals subject to hours of service limits. Amendment to tax return Form 2106, Hours of service limits. Amendment to tax return 50% limit on meals, 50% limit on meals. Amendment to tax return A Accountable plans, Accountable Plans, Per diem allowance more than federal rate. Amendment to tax return Accounting to employer, Accountable Plans Adequate accounting, Adequate Accounting Independent contractors, Adequate accounting. Amendment to tax return Adequate records, What Are Adequate Records? Advertising Car display, Advertising display on car. Amendment to tax return Expenses, 3 - Advertising expenses. Amendment to tax return Signs, display racks, or other promotional material to be used on recipient's business premises, Exceptions. Amendment to tax return Airline clubs, Club dues and membership fees. Amendment to tax return Allocating costs, Separating costs. Amendment to tax return , Separating costs. Amendment to tax return , Allocating between business and nonbusiness. Amendment to tax return , Allocating total cost. Amendment to tax return Allowance (see Reimbursements) Armed forces Assigned overseas, Members of the Armed Forces. Amendment to tax return Assistance (see Tax help) Associated entertainment, Associated Test Athletic clubs, Club dues and membership fees. Amendment to tax return B Basis of car, Basis. Amendment to tax return (see also Depreciation of car) Bona fide business purpose, Bona fide business purpose. Amendment to tax return Box seats at entertainment events, Skyboxes and other private luxury boxes. Amendment to tax return Business travel, Trip Primarily for Business Outside U. Amendment to tax return S. Amendment to tax return , Travel Entirely for Business or Considered Entirely for Business Business use of car, Business and personal use. Amendment to tax return More-than-50%-use test. Amendment to tax return , More-than-50%-use test. Amendment to tax return Qualified business use, Qualified business use. Amendment to tax return C Canceled checks As evidence of business expenses, Canceled check. Amendment to tax return Car expenses, Car Expenses, Reporting inclusion amounts. Amendment to tax return Actual expenses, Actual Car Expenses Allowances for, Per Diem and Car Allowances, Allowance more than the federal rate. Amendment to tax return Business and personal use, Business and personal use. Amendment to tax return Combining expenses, Car expenses. Amendment to tax return Disposition of car, Disposition of a Car Fixed and variable rate (FAVR) allowance, Fixed and variable rate (FAVR). Amendment to tax return Form 2106, Car expenses. Amendment to tax return Leasing a car, truck, or van, Leasing a Car, Reporting inclusion amounts. Amendment to tax return Mileage rate (see Standard mileage rate) Taxes paid on car, Taxes paid on your car. Amendment to tax return Traffic tickets, Fines and collateral. Amendment to tax return Car pools, Car pools. Amendment to tax return Car rentals, Reporting inclusion amounts. Amendment to tax return Form 2106, Car rentals. Amendment to tax return Car, defined, Car defined. Amendment to tax return Car, truck, or van rentals, Leasing a Car, Reporting inclusion amounts. Amendment to tax return Casualty and theft losses Cars, Casualty and theft losses. Amendment to tax return Depreciation, Casualty or theft. Amendment to tax return Charitable organizations Benefit events for, Exception for events that benefit charitable organizations. Amendment to tax return Sports events to benefit, 5 - Charitable sports event. Amendment to tax return Club dues, Club dues and membership fees. Amendment to tax return Commuting expenses, Commuting expenses. Amendment to tax return Conventions, Conventions, Meetings at conventions. Amendment to tax return Country clubs, Club dues and membership fees. Amendment to tax return Cruise ships, Cruise Ships D Daily business mileage and expense log (Table 6-2), Table 5-2. Amendment to tax return Daily Business Mileage and Expense Log Name: Depreciation of car, Depreciation and section 179 deductions. Amendment to tax return (see also Section 179 deductions) Adjustment for using standard mileage rate, Depreciation adjustment when you used the standard mileage rate. Amendment to tax return Basis, Basis. Amendment to tax return Sales taxes, Sales taxes. Amendment to tax return Unrecovered basis, How to treat unrecovered basis. Amendment to tax return Casualty or theft, effect, Casualty or theft. Amendment to tax return Deduction, Depreciation and section 179 deductions. Amendment to tax return , Depreciation deduction for the year of disposition. Amendment to tax return Excess depreciation, Excess depreciation. Amendment to tax return Modified Accelerated Cost Recovery System (MACRS), Modified Accelerated Cost Recovery System (MACRS). Amendment to tax return Trade-in, effect, Car trade-in. Amendment to tax return , Trade-in. Amendment to tax return Trucks and vans, Trucks and vans. Amendment to tax return Depreciation of Car Section 179 deduction, Section 179 deduction. Amendment to tax return Directly-related entertainment, Directly-Related Test Disabled employees Impairment-related work expenses, Impairment-Related Work Expenses of Disabled Employees Documentary evidence, Documentary evidence. Amendment to tax return E Employer-provided vehicles, Employer-provided vehicle. Amendment to tax return Reporting requirements, Vehicle Provided by Your Employer Entertainment expenses, Entertainment, Individuals subject to hours of service limits. Amendment to tax return , Gift or entertainment. Amendment to tax return 50% limit, Directly before or after business discussion. Amendment to tax return Determination of applicability (Figure A), 50% Limit Associated test, Associated Test Deductible, What Entertainment Expenses Are Deductible?, Expenses for spouses. Amendment to tax return Summary (Table 2-1), Exception for events that benefit charitable organizations. Amendment to tax return Directly-related test, Directly-Related Test Entertainment, defined, Entertainment. Amendment to tax return Form 2106, Meal and entertainment expenses. Amendment to tax return Tickets (see Tickets) Entertainment facilities Expenses for use of, Entertainment facilities. Amendment to tax return Estimates of expenses, How To Prove Expenses Exceptions to the 50% Limit, Exceptions to the 50% Limit Excess reimbursements (see Reimbursements) Extravagant expenses, Lavish or extravagant. Amendment to tax return , Lavish or extravagant expenses. Amendment to tax return F Fair market value of car, Fair market value. Amendment to tax return Farmers Form 1040, Schedule F, Self-employed. Amendment to tax return Federal crime investigations or prosecutions Federal employees engaged in, Exception for federal crime investigations or prosecutions. Amendment to tax return Federal rate for per diem, Standard Meal Allowance, The federal rate. Amendment to tax return Fee-basis officials, Officials Paid on a Fee Basis Fees you pay, Parking fees. Amendment to tax return Fixed and variable rate (FAVR) allowance, Fixed and variable rate (FAVR). Amendment to tax return Form 1040, Schedule C, Self-employed. Amendment to tax return Form 1040, Schedule F, Self-employed. Amendment to tax return Form 2106, How to choose. Amendment to tax return , Employees. Amendment to tax return , Full value included in your income. Amendment to tax return , Reporting your expenses under a nonaccountable plan. Amendment to tax return , Completing Forms 2106 and 2106-EZ Form 2106-EZ, Form 2106-EZ. Amendment to tax return Form 4562, Self-employed. Amendment to tax return Form 4797, Excess depreciation. Amendment to tax return Form W-2 Employer-provided vehicles, Value reported on Form W-2. Amendment to tax return Reimbursement of personal expenses, Reimbursement for personal expenses. Amendment to tax return Statutory employees, Statutory employees. Amendment to tax return Free tax services, Free help with your tax return. Amendment to tax return G Gifts, Gift or entertainment. Amendment to tax return , Gifts $25 limit, $25 limit. Amendment to tax return Combining for recordkeeping purposes, Gift expenses. Amendment to tax return Reporting requirements, Gifts. Amendment to tax return Golf clubs, Club dues and membership fees. Amendment to tax return H Hauling tools, Hauling tools or instruments. Amendment to tax return Help (see Tax help) High-low method Introduction, High-low method. Amendment to tax return Transition rules, High-low method. Amendment to tax return High-low rate method, High-low rate. Amendment to tax return Home office, Office in the home. Amendment to tax return Hotel clubs, Club dues and membership fees. Amendment to tax return I Impairment-related work expenses, Impairment-Related Work Expenses of Disabled Employees Incidental expenses Defined, Incidental expenses. Amendment to tax return Gifts, Incidental costs. Amendment to tax return No meals, incidentals only, Incidental-expenses-only method. Amendment to tax return Income-producing property, Income-producing property. Amendment to tax return Incomplete records, What If I Have Incomplete Records? Indefinite job assignment, Temporary assignment vs. Amendment to tax return indefinite assignment. Amendment to tax return Independent contractors, Rules for Independent Contractors and Clients Interest on car loans, Interest on car loans. Amendment to tax return Itinerants, Tax Home L Lavish or extravagant expenses, Lavish or extravagant. Amendment to tax return , Lavish or extravagant expenses. Amendment to tax return Leasing a car, truck, or van, Leasing a Car, Reporting inclusion amounts. Amendment to tax return Luxury private boxes at entertainment events, Skyboxes and other private luxury boxes. Amendment to tax return Luxury water travel, Luxury Water Travel M MACRS (Modified Accelerated Cost Recovery System), Modified Accelerated Cost Recovery System (MACRS). Amendment to tax return 2011 chart (Table 4-1), Table 4-1. Amendment to tax return 2013 MACRS Depreciation Chart (Use to Figure Depreciation for 2013. Amendment to tax return ) Main place of business or work, Main place of business or work. Amendment to tax return Married taxpayers Performing artists, Special rules for married persons. Amendment to tax return Meal expenses, Meals 50% limit, 50% Limit Determination of applicability (Figure A), 50% Limit Exceptions, Exceptions to the 50% Limit Actual cost method, Actual Cost Form 2106, Meal and entertainment expenses. Amendment to tax return Major cities with higher allowances, Amount of standard meal allowance. Amendment to tax return Standard meal allowance, Standard Meal Allowance, Who can use the standard meal allowance. Amendment to tax return , The standard meal allowance. Amendment to tax return Meals, entertainment-related, A meal as a form of entertainment. Amendment to tax return Mileage rate (see Standard mileage rate) Military (see Armed forces) Missing children, photographs of, Reminder Modified Accelerated Cost Recovery System (MACRS), Modified Accelerated Cost Recovery System (MACRS). Amendment to tax return 2011 chart (Table 4-1), Table 4-1. Amendment to tax return 2013 MACRS Depreciation Chart (Use to Figure Depreciation for 2013. Amendment to tax return ) N Nonaccountable plans, Nonaccountable Plans O Office in the home, Office in the home. Amendment to tax return Officials paid on fee basis, Officials Paid on a Fee Basis Overseas travel Conventions, Conventions Held Outside the North American Area Meal allowance, Standard meal allowance for areas outside the continental United States. Amendment to tax return Part of trip outside U. Amendment to tax return S. Amendment to tax return , Part of Trip Outside the United States P Parking fees, Parking fees. Amendment to tax return , Parking fees and tolls. Amendment to tax return Per diem allowances, Per Diem and Car Allowances, Allowance more than the federal rate. Amendment to tax return Defined, Reimbursement, allowance, or advance. Amendment to tax return Federal rate for, The federal rate. Amendment to tax return Per diem rates High-cost localities, High-low method. Amendment to tax return High-low method, High-low method. Amendment to tax return Regular federal method, Regular federal per diem rate method. Amendment to tax return Standard rate for unlisted localities, High-low method. Amendment to tax return , Regular federal per diem rate method. Amendment to tax return Transition rules, High-low method. Amendment to tax return , Federal per diem rate method. Amendment to tax return Performing artists, Expenses of Certain Performing Artists Personal property taxes, Personal property taxes. Amendment to tax return , Taxes paid on your car. Amendment to tax return Personal trips, Trip Primarily for Personal Reasons Outside U. Amendment to tax return S. Amendment to tax return , Travel Primarily for Personal Reasons Placed in service, cars, Placed in service. Amendment to tax return Probationary work period, Probationary work period. Amendment to tax return Proving business purpose, Proving business purpose. Amendment to tax return Public transportation Outside of U. Amendment to tax return S. Amendment to tax return travel, Public transportation. Amendment to tax return Publications (see Tax help) R Recordkeeping requirements, Recordkeeping, Examples of Records Adequate records, What Are Adequate Records? Daily business mileage and expense log (Table 6-2), Table 5-2. Amendment to tax return Daily Business Mileage and Expense Log Name: Destroyed records, Destroyed records. Amendment to tax return How to prove expenses (Table 5-1), Table 5-1. Amendment to tax return How To Prove Certain Business Expenses Incomplete records, What If I Have Incomplete Records? Reimbursed expenses, Reimbursed for expenses. Amendment to tax return Sampling to prove expenses, Sampling. Amendment to tax return Separating and combining expenses, Separating and Combining Expenses, If your return is examined. Amendment to tax return Three-year period of retention, How Long To Keep Records and Receipts Weekly travel expense and entertainment record (Table 6-3), THIS IS NOT AN OFFICIAL INTERNAL REVENUE FORM Regular federal method Introduction, Regular federal per diem rate method. Amendment to tax return Transition rules, Federal per diem rate method. Amendment to tax return Reimbursements, Less than full value included in your income. Amendment to tax return , Contractor does not adequately account. Amendment to tax return Accountable plans, Accountable Plans Excess, Returning Excess Reimbursements, Nonaccountable Plans Form 2106, Reimbursements. Amendment to tax return Nonaccountable plans, Nonaccountable Plans Nondeductible expenses, Reimbursement of nondeductible expenses. Amendment to tax return Personal expenses, Reimbursement for personal expenses. Amendment to tax return Recordkeeping, Reimbursed for expenses. Amendment to tax return Reporting (Table 6-1), Table 6-1. Amendment to tax return Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements Unclaimed, Where To Report Reporting requirements, How To Report Per diem or car allowance, Reporting your expenses with a per diem or car allowance. Amendment to tax return Reimbursements, Reimbursements, Contractor does not adequately account. Amendment to tax return Reservists Transportation expenses, Armed Forces reservists. Amendment to tax return Traveling more than 100 miles from home, Armed Forces Reservists Traveling More Than 100 Miles From Home Returning excess reimbursements, Returning Excess Reimbursements Rural mail carriers, Rural mail carriers. Amendment to tax return S Section 179 deduction Amended return, How to choose. Amendment to tax return Deduction, Section 179 Deduction Limits, Limits. Amendment to tax return Self-employed persons, 2 - Self-employed. Amendment to tax return Reporting requirements, Self-employed. Amendment to tax return Skyboxes, Skyboxes and other private luxury boxes. Amendment to tax return Spouse, expenses for, Travel expenses for another individual. Amendment to tax return , Expenses for spouses. Amendment to tax return Standard meal allowance, Standard Meal Allowance, Who can use the standard meal allowance. Amendment to tax return , The standard meal allowance. Amendment to tax return Standard mileage rate, What's New, Standard Mileage Rate, The standard mileage rate. Amendment to tax return Depreciation adjustment for using, Depreciation adjustment when you used the standard mileage rate. Amendment to tax return Form 2106, Standard mileage rate. Amendment to tax return Statutory employees, Statutory employees. Amendment to tax return T Tables and figures 50% limit determination (Figure A), 50% Limit Daily business mileage and expense log (Table 6-2), Table 5-2. Amendment to tax return Daily Business Mileage and Expense Log Name: Entertainment expenses, determination of deductibility (Table 2-1), Table 2-1. Amendment to tax return When Are Entertainment Expenses Deductible? Maximum depreciation deduction for cars table, Maximum Depreciation Deduction for Cars Modified Accelerated Cost Recovery System (MACRS) 2011 chart (Table 4-1), Table 4-1. Amendment to tax return 2013 MACRS Depreciation Chart (Use to Figure Depreciation for 2013. Amendment to tax return ) Proving expenses (Table 5-1), Table 5-1. Amendment to tax return How To Prove Certain Business Expenses Reporting reimbursements (Table 6-1), Table 6-1. Amendment to tax return Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements Transportation expenses, determination of deductibility (Figure B), Gift or entertainment. Amendment to tax return , Illustration of transportation expenses. Amendment to tax return Travel expenses, determination of deductibility (Table 1-1), Table 1-1. Amendment to tax return Travel Expenses You Can Deduct Weekly travel expense and entertainment record (Table 6-3), THIS IS NOT AN OFFICIAL INTERNAL REVENUE FORM Tax help, How To Get Tax Help Tax home, determination of, Tax Home Temporary job assignments, Temporary Assignment or Job Temporary work location, Temporary work location. Amendment to tax return Tickets, Entertainment tickets. Amendment to tax return , Gift or entertainment. Amendment to tax return Season or series tickets, Season or series tickets. Amendment to tax return Traffic violations, Fines and collateral. Amendment to tax return Tools Hauling tools, Hauling tools or instruments. Amendment to tax return Trade association meetings, Trade association meetings. Amendment to tax return Trade-in of car, Car trade-in. Amendment to tax return , Trade-in. Amendment to tax return Traffic tickets, Fines and collateral. Amendment to tax return Transients, Tax Home Transition rules, Transition Rules Example High-low method, High-low method. Amendment to tax return High-low method, High-low method. Amendment to tax return Regular federal method, Federal per diem rate method. Amendment to tax return Transportation expenses, Transportation, Depreciation deduction for the year of disposition. Amendment to tax return Car expenses, Car Expenses, Reporting inclusion amounts. Amendment to tax return Deductible (Figure B), Gift or entertainment. Amendment to tax return , Illustration of transportation expenses. Amendment to tax return five or more cars, Five or more cars. Amendment to tax return Form 2106, Transportation expenses. Amendment to tax return Transportation workers, Special rate for transportation workers. Amendment to tax return , Individuals subject to hours of service limits. Amendment to tax return Travel advance, Reimbursement, allowance, or advance. Amendment to tax return , Travel advance. Amendment to tax return (see also Reimbursements) Travel expenses, Travel, Cruise Ships Another individual accompanying taxpayer, Travel expenses for another individual. Amendment to tax return Away from home, Traveling Away From Home, Tax Home Deductible, What Travel Expenses Are Deductible?, Cruise Ships Summary of (Table 1-1), Table 1-1. Amendment to tax return Travel Expenses You Can Deduct Defined, Travel expenses defined. Amendment to tax return Going home on days off, Going home on days off. Amendment to tax return In U. Amendment to tax return S. Amendment to tax return , Travel in the United States Lodging, Standard Meal Allowance Luxury water travel, Luxury Water Travel Outside U. Amendment to tax return S. Amendment to tax return , Travel Outside the United States Travel to family home, Tax Home Different From Family Home Trucks and vans Depreciation, Trucks and vans. Amendment to tax return Transportation workers, Individuals subject to hours of service limits. Amendment to tax return Transportation workers' expenses, Special rate for transportation workers. Amendment to tax return Two places of work, Two places of work. Amendment to tax return U Unclaimed reimbursements, Where To Report Unions Trips from union hall to place of work, Union members' trips from a union hall. Amendment to tax return Unrecovered basis of car, How to treat unrecovered basis. Amendment to tax return V Volunteers, Volunteers. Amendment to tax return W Weekly travel expense and entertainment record (Table 6-3), THIS IS NOT AN OFFICIAL INTERNAL REVENUE FORM Prev  Up     Home   More Online Publications
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Better Business Bureaus (BBBs) are nonprofit organizations that encourage honest advertising and selling practices and are supported primarily by local businesses. They offer a variety of consumer services, including consumer education materials; business reports, particularly unanswered or unsettled complaints or other problems; mediation and arbitration services; and information about charities and other organizations that are seeking public donations. They also provide ratings (A, B, C, D, or F) of local companies to express the BBB's confidence that the company operates in a trustworthy manner and demonstrates a willingness to resolve customer concerns.

Bettendorf, IA

Website: Better Business Bureau

Email: info@dm.bbb.org

Address: Better Business Bureau
2435 Kimberly Rd., Suite 245 S
Bettendorf, IA 52722

Phone Number: 515-243-8137

Toll-free: 1-800-222-1600

Cedar Rapids, IA

Website: Better Business Bureau

Email: info@dm.bbb.org

Address: Better Business Bureau
1239 1st Ave., SE, Suite A
Cedar Rapids, IA 52402

Phone Number: 515-243-8137

Toll-free: 1-800-222-1600

Des Moines, IA

Website: Better Business Bureau

Email: info@dm.bbb.org

Address: Better Business Bureau
505 5th Ave., Suite 950
Des Moines, IA 50309

Phone Number: 515-243-8137

Toll-free: 1-800-222-1600

The Amendment To Tax Return

Amendment to tax return Publication 969 - Main Content Table of Contents Health Savings Accounts (HSAs)Qualifying for an HSA Contributions to an HSA Distributions From an HSA Balance in an HSA Death of HSA Holder Filing Form 8889 Employer Participation Medical Savings Accounts (MSAs)Archer MSAs Contributions to an MSA Distributions From an MSA Balance in an Archer MSA Death of the Archer MSA Holder Filing Form 8853 Employer Participation Medicare Advantage MSAs Flexible Spending Arrangements (FSAs)Qualifying for an FSA Contributions to an FSA Distributions From an FSA Balance in an FSA Employer Participation Health Reimbursement Arrangements (HRAs)Qualifying for an HRA Contributions to an HRA Distributions From an HRA Balance in an HRA Employer Participation How To Get Tax HelpLow Income Taxpayer Clinics Health Savings Accounts (HSAs) A health savings account (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. Amendment to tax return You must be an eligible individual to qualify for an HSA. Amendment to tax return No permission or authorization from the IRS is necessary to establish an HSA. Amendment to tax return You set up an HSA with a trustee. Amendment to tax return 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. Amendment to tax return The HSA can be established through a trustee that is different from your health plan provider. Amendment to tax return Your employer may already have some information on HSA trustees in your area. Amendment to tax return If you have an Archer MSA, you can generally roll it over into an HSA tax free. Amendment to tax return See Rollovers, later. Amendment to tax return What are the benefits of an HSA?   You may enjoy several benefits from having an HSA. Amendment to tax return You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040. Amendment to tax return Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded from your gross income. Amendment to tax return The contributions remain in your account until you use them. Amendment to tax return The interest or other earnings on the assets in the account are tax free. Amendment to tax return Distributions may be tax free if you pay qualified medical expenses. Amendment to tax return See Qualified medical expenses , later. Amendment to tax return An HSA is “portable. Amendment to tax return ” It stays with you if you change employers or leave the work force. Amendment to tax return Qualifying for an HSA To be an eligible individual and qualify for an HSA, you must meet the following requirements. Amendment to tax return You must be covered under a high deductible health plan (HDHP), described later, on the first day of the month. Amendment to tax return You have no other health coverage except what is permitted under Other health coverage , later. Amendment to tax return You are not enrolled in Medicare. Amendment to tax return You cannot be claimed as a dependent on someone else's 2013 tax return. Amendment to 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). Amendment to tax return If you meet these requirements, you are an eligible individual even if your spouse has non-HDHP family coverage, provided your spouse's coverage does not cover you. Amendment to tax return If another taxpayer is entitled to claim an exemption for you, you cannot claim a deduction for an HSA contribution. Amendment to tax return This is true even if the other person does not actually claim your exemption. Amendment to tax return Each spouse who is an eligible individual who wants an HSA must open a separate HSA. Amendment to tax return You cannot have a joint HSA. Amendment to tax return High deductible health plan (HDHP). Amendment to tax return   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. Amendment to tax return Out-of-pocket expenses include copayments and other amounts, but do not include premiums. Amendment to tax return   An HDHP may provide preventive care benefits without a deductible or with a deductible less than the minimum annual deductible. Amendment to tax return Preventive care includes, but is not limited to, the following. Amendment to tax return Periodic health evaluations, including tests and diagnostic procedures ordered in connection with routine examinations, such as annual physicals. Amendment to tax return Routine prenatal and well-child care. Amendment to tax return Child and adult immunizations. Amendment to tax return Tobacco cessation programs. Amendment to tax return Obesity weight-loss programs. Amendment to tax return Screening services. Amendment to tax return This includes screening services for the following: Cancer. Amendment to tax return Heart and vascular diseases. Amendment to tax return Infectious diseases. Amendment to tax return Mental health conditions. Amendment to tax return Substance abuse. Amendment to tax return Metabolic, nutritional, and endocrine conditions. Amendment to tax return Musculoskeletal disorders. Amendment to tax return Obstetric and gynecological conditions. Amendment to tax return Pediatric conditions. Amendment to tax return Vision and hearing disorders. Amendment to tax return For more information on screening services, see Notice 2004-23, 2004-15 I. Amendment to tax return R. Amendment to tax return B. Amendment to tax return 725 available at www. Amendment to tax return irs. Amendment to tax return gov/irb/2004-15_IRB/ar10. Amendment to tax return html. Amendment to tax return     The following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2013. Amendment to tax return      Self-only coverage Family coverage Minimum annual deductible $1,250 $2,500 Maximum annual deductible and other out-of-pocket expenses* $6,250 $12,500 * This limit does not apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Amendment to tax return Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit applies. Amendment to tax return    The following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2014. Amendment to tax return      Self-only coverage Family coverage Minimum annual deductible $1,250 $2,500 Maximum annual deductible and other out-of-pocket expenses* $6,350 $12,700 * This limit does not apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Amendment to tax return Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit applies. Amendment to tax return   Self-only HDHP coverage is an HDHP covering only an eligible individual. Amendment to tax return Family HDHP coverage is an HDHP covering an eligible individual and at least one other individual (whether or not that individual is an eligible individual). Amendment to tax return Example. Amendment to tax return An eligible individual and his dependent child are covered under an “employee plus one” HDHP offered by the individual's employer. Amendment to tax return This is family HDHP coverage. Amendment to tax return Family plans that do not meet the high deductible rules. Amendment to tax return   There are some family plans that have deductibles for both the family as a whole and for individual family members. Amendment to tax return Under these plans, if you meet the individual deductible for one family member, you do not have to meet the higher annual deductible amount for the family. Amendment to tax return 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 does not qualify as an HDHP. Amendment to tax return Example. Amendment to tax return You have family health insurance coverage in 2013. Amendment to tax return The annual deductible for the family plan is $3,500. Amendment to tax return This plan also has an individual deductible of $1,500 for each family member. Amendment to tax return The plan does not qualify as an HDHP because the deductible for an individual family member is less than the minimum annual deductible ($2,500) for family coverage. Amendment to tax return Other health coverage. Amendment to tax return   You (and your spouse, if you have family coverage) generally cannot have any other health coverage that is not an HDHP. Amendment to tax return However, you can still be an eligible individual even if your spouse has non-HDHP coverage provided you are not covered by that plan. Amendment to tax return    You can have additional insurance that provides benefits only for the following items. Amendment to tax return Liabilities incurred under workers' compensation laws, tort liabilities, or liabilities related to ownership or use of property. Amendment to tax return A specific disease or illness. Amendment to tax return A fixed amount per day (or other period) of hospitalization. Amendment to tax return   You can also have coverage (whether provided through insurance or otherwise) for the following items. Amendment to tax return Accidents. Amendment to tax return Disability. Amendment to tax return Dental care. Amendment to tax return Vision care. Amendment to tax return Long-term care. Amendment to tax return    Plans in which substantially all of the coverage is through the items listed earlier are not HDHPs. Amendment to tax return For example, if your plan provides coverage substantially all of which is for a specific disease or illness, the plan is not an HDHP for purposes of establishing an HSA. Amendment to tax return Prescription drug plans. Amendment to tax return   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 does not provide benefits until the minimum annual deductible of the HDHP has been met. Amendment to tax return If you can receive benefits before that deductible is met, you are not an eligible individual. Amendment to tax return Other employee health plans. Amendment to tax return   An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally cannot make contributions to an HSA. Amendment to tax return Health FSAs and HRAs are discussed later. Amendment to tax return   However, an employee can make contributions to an HSA while covered under an HDHP and one or more of the following arrangements. Amendment to tax return Limited-purpose health FSA or HRA. Amendment to tax return These arrangements can pay or reimburse the items listed earlier under Other health coverage except long-term care. Amendment to tax return Also, these arrangements can pay or reimburse preventive care expenses because they can be paid without having to satisfy the deductible. Amendment to tax return Suspended HRA. Amendment to tax return Before the beginning of an HRA coverage period, you can elect to suspend the HRA. Amendment to tax return The HRA does not pay or reimburse, at any time, the medical expenses incurred during the suspension period except preventive care and items listed under Other health coverage. Amendment to tax return When the suspension period ends, you are no longer eligible to make contributions to an HSA. Amendment to tax return Post-deductible health FSA or HRA. Amendment to tax return These arrangements do not pay or reimburse any medical expenses incurred before the minimum annual deductible amount is met. Amendment to tax return The deductible for these arrangements does not 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. Amendment to tax return Retirement HRA. Amendment to tax return This arrangement pays or reimburses only those medical expenses incurred after retirement. Amendment to tax return After retirement you are no longer eligible to make contributions to an HSA. Amendment to tax return Health FSA – grace period. Amendment to tax return   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. Amendment to tax return See Flexible Spending Arrangements (FSAs) , later. Amendment to tax return Contributions to an HSA Any eligible individual can contribute to an HSA. Amendment to tax return For an employee's HSA, the employee, the employee's employer, or both may contribute to the employee's HSA in the same year. Amendment to tax return For an HSA established by a self-employed (or unemployed) individual, the individual can contribute. Amendment to tax return Family members or any other person may also make contributions on behalf of an eligible individual. Amendment to tax return Contributions to an HSA must be made in cash. Amendment to tax return Contributions of stock or property are not allowed. Amendment to tax return 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. Amendment to tax return For 2013, if you have self-only HDHP coverage, you can contribute up to $3,250. Amendment to tax return If you have family HDHP coverage, you can contribute up to $6,450. Amendment to tax return For 2014, if you have self-only HDHP coverage, you can contribute up to $3,300. Amendment to tax return If you have family HDHP coverage you can contribute up to $6,550. Amendment to tax return If you were, or were considered (under the last-month rule, discussed later), an eligible individual for the entire year and did not change your type of coverage, you can contribute the full amount based on your type of coverage. Amendment to tax return However, if you were not 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 Worksheetin 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. Amendment to tax return If you had family HDHP coverage on the first day of the last month of your tax year, your contribution limit for 2013 is $6,450 even if you changed coverage during the year. Amendment to tax return Last-month rule. Amendment to tax return   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. Amendment to tax return You are treated as having the same HDHP coverage for the entire year as you had on the first day of the last month. Amendment to tax return Testing period. Amendment to tax return   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. Amendment to tax return 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. Amendment to tax return For example, December 1, 2013, through December 31, 2014. Amendment to tax return   If you fail to remain an eligible individual during the testing period, other than because of death or becoming disabled, you will have to include in income the total contributions made to your HSA that would not have been made except for the last-month rule. Amendment to tax return You include this amount in your income in the year in which you fail to be an eligible individual. Amendment to tax return This amount is also subject to a 10% additional tax. Amendment to tax return The income and additional tax are shown on Form 8889, Part III. Amendment to tax return Example 1. Amendment to tax return Chris, age 53, becomes an eligible individual on December 1, 2013. Amendment to tax return He has family HDHP coverage on that date. Amendment to tax return Under the last-month rule, he contributes $6,450 to his HSA. Amendment to tax return Chris fails to be an eligible individual in June 2014. Amendment to tax return Because Chris did not remain an eligible individual during the testing period (December 1, 2013, through December 31, 2014), he must include in his 2014 income the contributions made in 2013 that would not have been made except for the last-month rule. Amendment to tax return Chris uses the worksheet in the Form 8889 instructions to determine this amount. Amendment to tax return January -0- February -0- March -0- April -0- May -0- June -0- July -0- August -0- September -0- October -0- November -0- December $6,450. Amendment to tax return 00 Total for all months $6,450. Amendment to tax return 00 Limitation. Amendment to tax return Divide the total by 12 $537. Amendment to tax return 50 Chris would include $5,912. Amendment to tax return 50 ($6,450. Amendment to tax return 00 – $537. Amendment to tax return 50) in his gross income on his 2014 tax return. Amendment to tax return Also, a 10% additional tax applies to this amount. Amendment to tax return Example 2. Amendment to tax return Erika, age 39, has self-only HDHP coverage on January 1, 2013. Amendment to tax return Erika changes to family HDHP coverage on November 1, 2013. Amendment to tax return Because Erika has family HDHP coverage on December 1, 2013, she contributes $6,450 for 2013. Amendment to tax return Erika fails to be an eligible individual in March 2014. Amendment to tax return Because she did not remain an eligible individual during the testing period (December 1, 2013, through December 31, 2014), she must include in income the contribution made that would not have been made except for the last-month rule. Amendment to tax return Erika uses the worksheet in the Form 8889 instructions to determine this amount. Amendment to tax return January $3,250. Amendment to tax return 00 February $3,250. Amendment to tax return 00 March $3,250. Amendment to tax return 00 April $3,250. Amendment to tax return 00 May $3,250. Amendment to tax return 00 June $3,250. Amendment to tax return 00 July $3,250. Amendment to tax return 00 August $3,250. Amendment to tax return 00 September $3,250. Amendment to tax return 00 October $3,250. Amendment to tax return 00 November $6,450. Amendment to tax return 00 December $6,450. Amendment to tax return 00 Total for all months $45,400. Amendment to tax return 00 Limitation. Amendment to tax return Divide the total by 12 $3,783. Amendment to tax return 34 Erika would include $2,666. Amendment to tax return 67 ($6,450 – $3,783. Amendment to tax return 34) in her gross income on her 2014 tax return. Amendment to tax return Also, a 10% additional tax applies to this amount. Amendment to tax return Additional contribution. Amendment to tax return   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. Amendment to tax return For example, if you have self-only coverage, you can contribute up to $4,250 (the contribution limit for self-only coverage ($3,250) plus the additional contribution of $1,000). Amendment to tax return However, see Enrolled in Medicare , later. Amendment to tax return If you have more than one HSA in 2013, your total contributions to all the HSAs cannot be more than the limits discussed earlier. Amendment to tax return Reduction of contribution limit. Amendment to tax return   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. Amendment to tax return A special rule applies to married people, discussed next, if each spouse has family coverage under an HDHP. Amendment to tax return Rules for married people. Amendment to tax return   If either spouse has family HDHP coverage, both spouses are treated as having family HDHP coverage. Amendment to tax return If each spouse has family coverage under a separate plan, the contribution limit for 2013 is $6,450. Amendment to tax return You must reduce the limit on contributions, before taking into account any additional contributions, by the amount contributed to both spouses' Archer MSAs. Amendment to tax return After that reduction, the contribution limit is split equally between the spouses unless you agree on a different division. Amendment to tax return The rules for married people apply only if both spouses are eligible individuals. Amendment to tax return If both spouses are 55 or older and not enrolled in Medicare, each spouse's contribution limit is increased by the additional contribution. Amendment to tax return If both spouses meet the age requirement, the total contributions under family coverage cannot be more than $8,450. Amendment to tax return Each spouse must make the additional contribution to his or her own HSA. Amendment to tax return Example. Amendment to tax return For 2013, Mr. Amendment to tax return Auburn and his wife are both eligible individuals. Amendment to tax return They each have family coverage under separate HDHPs. Amendment to tax return Mr. Amendment to tax return Auburn is 58 years old and Mrs. Amendment to tax return Auburn is 53. Amendment to tax return Mr. Amendment to tax return and Mrs. Amendment to tax return Auburn can split the family contribution limit ($6,450) equally or they can agree on a different division. Amendment to tax return If they split it equally, Mr. Amendment to tax return Auburn can contribute $4,225 to an HSA (one-half the maximum contribution for family coverage ($3,225) + $1,000 additional contribution) and Mrs. Amendment to tax return Auburn can contribute $3,225 to an HSA. Amendment to tax return Employer contributions. Amendment to tax return   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. Amendment to tax return This includes amounts contributed to your account by your employer through a cafeteria plan. Amendment to tax return Enrolled in Medicare. Amendment to tax return   Beginning with the first month you are enrolled in Medicare, your contribution limit is zero. Amendment to tax return Example. Amendment to tax return You turned age 65 in July 2013 and enrolled in Medicare. Amendment to tax return You had an HDHP with self-only coverage and are eligible for an additional contribution of $1,000. Amendment to tax return Your contribution limit is $2,125 ($4,250 × 6 ÷ 12). Amendment to tax return Qualified HSA funding distribution. Amendment to tax return   A qualified HSA funding distribution may be made from your traditional IRA or Roth IRA to your HSA. Amendment to tax return This distribution cannot be made from an ongoing SEP IRA or SIMPLE IRA. Amendment to tax return 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 your tax year in which the distribution would be made. Amendment to tax return   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. Amendment to tax return The distribution must be made directly by the trustee of the IRA to the trustee of the HSA. Amendment to tax return The distribution is not included in your income, is not deductible, and reduces the amount that can be contributed to your HSA. Amendment to tax return The qualified HSA funding distribution is shown on Form 8889 for the year in which the distribution is made. Amendment to tax return   You can make only one qualified HSA funding distribution during your lifetime. Amendment to tax return 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. Amendment to tax return The total qualified HSA funding distribution cannot be more than the contribution limit for family HDHP coverage plus any additional contribution to which you are entitled. Amendment to tax return Example. Amendment to tax return In 2013, you are an eligible individual, age 57, with self-only HDHP coverage. Amendment to tax return You can make a qualified HSA funding distribution of $4,250 ($3,250 plus $1,000 additional contribution). Amendment to tax return Funding distribution – testing period. Amendment to tax return   You must remain an eligible individual during the testing period. Amendment to tax return 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. Amendment to tax return For example, if a qualified HSA funding distribution is contributed to your HSA on August 10, 2013, your testing period begins in August 2013, and ends on August 31, 2014. Amendment to tax return   If you fail to remain an eligible individual during the testing period, other than because of death or becoming disabled, you will have to include in income the qualified HSA funding distribution. Amendment to tax return You include this amount in income in the year in which you fail to be an eligible individual. Amendment to tax return This amount is also subject to a 10% additional tax. Amendment to tax return The income and the additional tax are shown on Form 8889, Part III. Amendment to tax return   Each qualified HSA funding distribution allowed has its own testing period. Amendment to tax return For example, you are an eligible individual, age 45, with self-only HDHP coverage. Amendment to tax return On June 18, 2013, you make a qualified HSA funding distribution of $3,250. Amendment to tax return On July 27, 2013, you enroll in family HDHP coverage and on August 17, 2013, you make a qualified HSA funding distribution of $3,200. Amendment to tax return Your testing period for the first distribution begins in June 2013 and ends on June 30, 2014. Amendment to tax return Your testing period for the second distribution begins in August 2013 and ends on August 31, 2014. Amendment to tax return   The testing period rule that applies under the last-month rule (discussed earlier) does not apply to amounts contributed to an HSA through a qualified HSA funding distribution. Amendment to tax return If you remain an eligible individual during the entire funding distribution testing period, then no amount of that distribution is included in income and will not be subject to the additional tax for failing to meet the last-month rule testing period. Amendment to tax return Rollovers A rollover contribution is not included in your income, is not deductible, and does not reduce your contribution limit. Amendment to tax return Archer MSAs and other HSAs. Amendment to tax return   You can roll over amounts from Archer MSAs and other HSAs into an HSA. Amendment to tax return You do not have to be an eligible individual to make a rollover contribution from your existing HSA to a new HSA. Amendment to tax return Rollover contributions do not need to be in cash. Amendment to tax return Rollovers are not subject to the annual contribution limits. Amendment to tax return   You must roll over the amount within 60 days after the date of receipt. Amendment to tax return You can make only one rollover contribution to an HSA during a 1-year period. Amendment to tax return Note. Amendment to tax return If you instruct the trustee of your HSA to transfer funds directly to the trustee of another of your HSAs, the transfer is not considered a rollover. Amendment to tax return There is no limit on the number of these transfers. Amendment to tax return Do not include the amount transferred in income, deduct it as a contribution, or include it as a distribution on Form 8889. Amendment to tax return When To Contribute You can make contributions to your HSA for 2013 until April 15, 2014. Amendment to tax return If you fail to be an eligible individual during 2013, you can still make contributions, up until April 15, 2014, for the months you were an eligible individual. Amendment to tax return Your employer can make contributions to your HSA between January 1, 2014, and April 15, 2014, that are allocated to 2013. Amendment to tax return Your employer must notify you and the trustee of your HSA that the contribution is for 2013. Amendment to tax return The contribution will be reported on your 2014 Form W-2. Amendment to tax return Reporting Contributions on Your Return Contributions made by your employer are not included in your income. Amendment to tax return 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. Amendment to tax return Generally, you can claim contributions you made and contributions made by any other person, other than your employer, on your behalf, as an adjustment to income. Amendment to tax return Contributions by a partnership to a bona fide partner's HSA are not contributions by an employer. Amendment to tax return The contributions are treated as a distribution of money and are not included in the partner's gross income. Amendment to tax return Contributions by a partnership to a partner's HSA for services rendered are treated as guaranteed payments that are deductible by the partnership and includible in the partner's gross income. Amendment to tax return In both situations, the partner can deduct the contribution made to the partner's HSA. Amendment to tax return 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. Amendment to tax return The shareholder-employee can deduct the contribution made to the shareholder-employee's HSA. Amendment to tax return Form 8889. Amendment to tax return   Report all contributions to your HSA on Form 8889 and file it with your Form 1040 or Form 1040NR. Amendment to tax return You should include all contributions made for 2013, including those made by April 15, 2014, that are designated for 2013. Amendment to tax return Contributions made by your employer and qualified HSA funding distributions are also shown on the form. Amendment to tax return   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. Amendment to tax return Your employer's contributions also will be shown in box 12 of Form W-2, Wage and Tax Statement, with code W. Amendment to tax return Follow the instructions for Form 8889. Amendment to tax return Report your HSA deduction on Form 1040 or Form 1040NR. Amendment to tax return Excess contributions. Amendment to tax return   You will have excess contributions if the contributions to your HSA for the year are greater than the limits discussed earlier. Amendment to tax return Excess contributions are not deductible. Amendment to tax return Excess contributions made by your employer are included in your gross income. Amendment to tax return If the excess contribution is not included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return. Amendment to tax return   Generally, you must pay a 6% excise tax on excess contributions. Amendment to tax return See Form 5329, Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. Amendment to tax return The excise tax applies to each tax year the excess contribution remains in the account. Amendment to tax return   You may withdraw some or all of the excess contributions and not pay the excise tax on the amount withdrawn if you meet the following conditions. Amendment to tax return You withdraw the excess contributions by the due date, including extensions, of your tax return for the year the contributions were made. Amendment to 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. Amendment to tax return If you fail to remain an eligible individual during any of the testing periods, discussed earlier, the amount you have to include in income is not an excess contribution. Amendment to tax return If you withdraw any of those amounts, the amount is treated the same as any other distribution from an HSA, discussed later. Amendment to tax return Deducting an excess contribution in a later year. Amendment to tax return   You may be able to deduct excess contributions for previous years that are still in your HSA. Amendment to tax return The excess contribution you can deduct for the current year is the lesser of the following two amounts. Amendment to tax return Your maximum HSA contribution limit for the year minus any amounts contributed to your HSA for the year. Amendment to tax return The total excess contributions in your HSA at the beginning of the year. Amendment to tax return   Amounts contributed for the year include contributions by you, your employer, and any other person. Amendment to tax return They also include any qualified HSA funding distribution made to your HSA. Amendment to tax return Any excess contribution remaining at the end of a tax year is subject to the excise tax. Amendment to tax return See Form 5329. Amendment to tax return 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. Amendment to tax return When you pay medical expenses during the year that are not reimbursed by your HDHP, you can ask the trustee of your HSA to send you a distribution from your HSA. Amendment to tax return 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. Amendment to tax return 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. Amendment to tax return You do not have to make distributions from your HSA each year. Amendment to tax return If you are no longer an eligible individual, you can still receive tax-free distributions to pay or reimburse your qualified medical expenses. Amendment to tax return Generally, a distribution is money you get from your health savings account. Amendment to tax return Your total distributions include amounts paid with a debit card that restricts payments to health care and amounts withdrawn from the HSA by other individuals that you have designated. Amendment to tax return 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. Amendment to tax return Qualified medical expenses. Amendment to tax return   Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. Amendment to tax return These are explained in Publication 502, Medical and Dental Expenses. Amendment to tax return   Also, non-prescription medicines (other than insulin) are not considered qualified medical expenses for HSA purposes. Amendment to tax return A medicine or drug will be a qualified medical expense for HSA purposes only if the medicine or drug: Requires a prescription, Is available without a prescription (an over-the-counter medicine or drug) and you get a prescription for it, or Is insulin. Amendment to tax return   For HSA purposes, expenses incurred before you establish your HSA are not qualified medical expenses. Amendment to tax return State law determines when an HSA is established. Amendment to tax return 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. Amendment to tax return   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. Amendment to tax return   Qualified medical expenses are those incurred by the following persons. Amendment to tax return You and your spouse. Amendment to tax return All dependents you claim on your tax return. Amendment to 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 $3,900 or more, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Amendment to tax return    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. Amendment to tax return You cannot deduct qualified medical expenses as an itemized deduction on Schedule A (Form 1040) that are equal to the tax-free distribution from your HSA. Amendment to tax return Insurance premiums. Amendment to tax return   You cannot treat insurance premiums as qualified medical expenses unless the premiums are for: Long-term care insurance. Amendment to tax return Health care continuation coverage (such as coverage under COBRA). Amendment to tax return Health care coverage while receiving unemployment compensation under federal or state law. Amendment to tax return Medicare and other health care coverage if you were 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap). Amendment to tax return   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. Amendment to tax return See Limit on long-term care premiums you can deduct in the instructions for Schedule A (Form 1040). Amendment to tax return   Items (2) and (3) can be for your spouse or a dependent meeting the requirement for that type of coverage. Amendment to tax return For item (4), if you, the account beneficiary, are not 65 or older, Medicare premiums for coverage of your spouse or a dependent (who is 65 or older) generally are not qualified medical expenses. Amendment to tax return Health coverage tax credit. Amendment to tax return   You cannot claim this credit for premiums that you pay with a tax-free distribution from your HSA. Amendment to tax return See Publication 502 for more information on this credit. Amendment to tax return Deemed distributions from HSAs. Amendment to tax return   The following situations result in deemed taxable distributions from your HSA. Amendment to tax return You engaged in any transaction prohibited by section 4975 with respect to any of your HSAs, at any time in 2013. Amendment to tax return Your account ceases to be an HSA as of January 1, 2013, and you must include the fair market value of all assets in the account as of January 1, 2013, on Form 8889. Amendment to tax return You used any portion of any of your HSAs as security for a loan at any time in 2013. Amendment to tax return You must include the fair market value of the assets used as security for the loan as income on Form 1040 or Form 1040NR. Amendment to tax return   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. Amendment to tax return   Any deemed distribution will not be treated as used to pay qualified medical expenses. Amendment to tax return These distributions are included in your income and are subject to the additional 20% tax, discussed later. Amendment to tax return Recordkeeping. Amendment to tax return You must keep records sufficient to show that: The distributions were exclusively to pay or reimburse qualified medical expenses, The qualified medical expenses had not been previously paid or reimbursed from another source, and The medical expenses had not been taken as an itemized deduction in any year. Amendment to tax return Do not send these records with your tax return. Amendment to tax return Keep them with your tax records. Amendment to tax return 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). Amendment to tax return If you use a distribution from your HSA for qualified medical expenses, you do not pay tax on the distribution but you have to report the distribution on Form 8889. Amendment to tax return 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. Amendment to tax return Follow the instructions for the form and file it with your Form 1040 or Form 1040NR. Amendment to tax return If you do not use a distribution from your HSA for qualified medical expenses, you must pay tax on the distribution. Amendment to tax return Report the amount on Form 8889 and file it with your Form 1040 or Form 1040NR. Amendment to tax return You may have to pay an additional 20% tax on your taxable distribution. Amendment to tax return HSA administration and maintenance fees withdrawn by the trustee are not reported as distributions from the HSA. Amendment to tax return Additional tax. Amendment to tax return   There is an additional 20% tax on the part of your distributions not used for qualified medical expenses. Amendment to tax return Figure the tax on Form 8889 and file it with your Form 1040 or Form 1040NR. Amendment to tax return Exceptions. Amendment to tax return   There is no additional tax on distributions made after the date you are disabled, reach age 65, or die. Amendment to tax return Balance in an HSA An HSA is generally exempt from tax. Amendment to tax return 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. Amendment to tax return Amounts that remain at the end of the year are generally carried over to the next year (see Excess contributions , earlier). Amendment to tax return Earnings on amounts in an HSA are not included in your income while held in the HSA. Amendment to tax return Death of HSA Holder You should choose a beneficiary when you set up your HSA. Amendment to tax return What happens to that HSA when you die depends on whom you designate as the beneficiary. Amendment to tax return Spouse is the designated beneficiary. Amendment to tax return   If your spouse is the designated beneficiary of your HSA, it will be treated as your spouse's HSA after your death. Amendment to tax return Spouse is not the designated beneficiary. Amendment to tax return   If your spouse is not 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. Amendment to tax return If your estate is the beneficiary, the value is included on your final income tax return. Amendment to 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. Amendment to tax return Filing Form 8889 You must file Form 8889 with your Form 1040 or Form 1040NR if you (or your spouse, if married filing a joint return) had any activity in your HSA during the year. Amendment to tax return You must file the form even if only your employer or your spouse's employer made contributions to the HSA. Amendment to tax return 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. Amendment to tax return Enter “statement” at the top of each Form 8889 and complete the form as instructed. Amendment to tax return Next, complete a controlling Form 8889 combining the amounts shown on each of the statement Forms 8889. Amendment to tax return Attach the statements to your tax return after the controlling Form 8889. Amendment to tax return Employer Participation This section contains the rules that employers must follow if they decide to make HSAs available to their employees. Amendment to tax return Unlike the previous discussions, “you” refers to the employer and not to the employee. Amendment to tax return Health plan. Amendment to tax return   If you want your employees to be able to have an HSA, they must have an HDHP. Amendment to tax return You can provide no additional coverage other than those exceptions listed previously under Other health coverage . Amendment to tax return Contributions. Amendment to tax return   You can make contributions to your employees' HSAs. Amendment to tax return You deduct the contributions on your business income tax return for the year in which you make the contributions. Amendment to tax return If the contribution is allocated to the prior year, you still deduct it in the year in which you made the contribution. Amendment to tax return   For more information on employer contributions, see Notice 2008-59, 2008-29 I. Amendment to tax return R. Amendment to tax return B. Amendment to tax return 123, questions 23 through 27, available at www. Amendment to tax return irs. Amendment to tax return gov/irb/2008-29_IRB/ar11. Amendment to tax return html. Amendment to tax return Comparable contributions. Amendment to tax return   If you decide to make contributions, you must make comparable contributions to all comparable participating employees' HSAs. Amendment to tax return 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. Amendment to tax return The comparability rules do not apply to contributions made through a cafeteria plan. Amendment to tax return Comparable participating employees. Amendment to tax return   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). Amendment to tax return   To meet the comparability requirements for eligible employees who have not established an HSA by December 31 or have not notified you that they have an HSA, you must meet a notice requirement and a contribution requirement. Amendment to tax return   You will meet the notice requirement if by January 15 of the following calendar year you provide a written notice to all such employees. Amendment to tax return The notice must state that each eligible employee who, by the last day of February, establishes an HSA and notifies you that they have established an HSA will receive a comparable contribution to the HSA for the prior year. Amendment to tax return For a sample of the notice, see Regulation 54. Amendment to tax return 4980G-4 A-14(c). Amendment to tax return You will meet the contribution requirement for these employees if by April 15, 2014, you contribute comparable amounts plus reasonable interest to the employee's HSA for the prior year. Amendment to tax return Note. Amendment to tax return For purposes of making contributions to HSAs of non-highly compensated employees, highly compensated employees shall not be treated as comparable participating employees. Amendment to tax return Excise tax. Amendment to tax return   If you made contributions to your employees' HSAs that were not comparable, you must pay an excise tax of 35% of the amount you contributed. Amendment to tax return Employment taxes. Amendment to tax return   Amounts you contribute to your employees' HSAs are generally not subject to employment taxes. Amendment to tax return You must report the contributions in box 12 of the Form W-2 you file for each employee. Amendment to tax return This includes the amounts the employee elected to contribute through a cafeteria plan. Amendment to tax return Enter code “W” in box 12. Amendment to tax return 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). Amendment to tax return After December 31, 2007, you cannot be treated as an eligible individual for Archer MSA purposes unless: You were an active participant for any tax year ending before January 1, 2008, or You became an active participant for a tax year ending after December 31, 2007, by reason of coverage under a high deductible health plan (HDHP) of an Archer MSA participating employer. Amendment to tax return 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. Amendment to tax return Archer MSAs An Archer MSA is a tax-exempt trust or custodial account that you set up with a U. Amendment to tax return S. Amendment to tax return financial institution (such as a bank or an insurance company) in which you can save money exclusively for future medical expenses. Amendment to tax return What are the benefits of an Archer MSA?   You may enjoy several benefits from having an Archer MSA. Amendment to tax return You can claim a tax deduction for contributions you make even if you do not itemize your deductions on Form 1040 or Form 1040NR. Amendment to tax return The interest or other earnings on the assets in your Archer MSA are tax free. Amendment to tax return Distributions may be tax free if you pay qualified medical expenses. Amendment to tax return See Qualified medical expenses , later. Amendment to tax return The contributions remain in your Archer MSA from year to year until you use them. Amendment to tax return An Archer MSA is “portable” so it stays with you if you change employers or leave the work force. Amendment to tax return Qualifying for an Archer MSA To qualify for an Archer MSA, you must be either of the following. Amendment to tax return 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). Amendment to tax return A self-employed person (or the spouse of a self-employed person) who maintains a self-only or family HDHP. Amendment to tax return You can have no other health or Medicare coverage except what is permitted under Other health coverage , later. Amendment to tax return You must be an eligible individual on the first day of a given month to get an Archer MSA deduction for that month. Amendment to tax return If another taxpayer is entitled to claim an exemption for you, you cannot claim a deduction for an Archer MSA contribution. Amendment to tax return This is true even if the other person does not actually claim your exemption. Amendment to tax return Small employer. Amendment to tax return   A small employer is generally an employer who had an average of 50 or fewer employees during either of the last 2 calendar years. Amendment to tax return The definition of small employer is modified for new employers and growing employers. Amendment to tax return Growing employer. Amendment to tax return   A small employer may begin HDHPs and Archer MSAs for his or her employees and then grow beyond 50 employees. Amendment to tax return The employer will continue to meet the requirement for small employers if he or she: 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 he or she had 50 or fewer employees, and Had an average of 200 or fewer employees each year after 1996. Amendment to tax return Changing employers. Amendment to tax return   If you change employers, your Archer MSA moves with you. Amendment to tax return However, you may not make additional contributions unless you are otherwise eligible. Amendment to tax return High deductible health plan (HDHP). Amendment to tax return   To be eligible for an Archer MSA, you must be covered under an HDHP. Amendment to tax return 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. Amendment to tax return Limits. Amendment to tax return   The following table shows the limits for annual deductibles and the maximum out-of-pocket expenses for HDHPs for 2013. Amendment to tax return   Self-only coverage Family coverage Minimum annual deductible $2,150 $4,300 Maximum annual deductible $3,200 $6,450 Maximum annual out-of-pocket expenses $4,300 $7,850 Family plans that do not meet the high deductible rules. Amendment to tax return   There are some family plans that have deductibles for both the family as a whole and for individual family members. Amendment to tax return Under these plans, if you meet the individual deductible for one family member, you do not have to meet the higher annual deductible amount for the family. Amendment to tax return 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 does not qualify as an HDHP. Amendment to tax return Example. Amendment to tax return You have family health insurance coverage in 2013. Amendment to tax return The annual deductible for the family plan is $5,500. Amendment to tax return This plan also has an individual deductible of $2,000 for each family member. Amendment to tax return The plan does not qualify as an HDHP because the deductible for an individual family member is less than the minimum annual deductible ($4,300) for family coverage. Amendment to tax return Other health coverage. Amendment to tax return   You (and your spouse, if you have family coverage) generally cannot have any other health coverage that is not an HDHP. Amendment to tax return However, you can still be an eligible individual even if your spouse has non-HDHP coverage provided you are not covered by that plan. Amendment to tax return However, you can have additional insurance that provides benefits only for the following items. Amendment to tax return Liabilities incurred under workers' compensation laws, torts, or ownership or use of property. Amendment to tax return A specific disease or illness. Amendment to tax return A fixed amount per day (or other period) of hospitalization. Amendment to tax return You can also have coverage (whether provided through insurance or otherwise) for the following items. Amendment to tax return Accidents. Amendment to tax return Disability. Amendment to tax return Dental care. Amendment to tax return Vision care. Amendment to tax return Long-term care. Amendment to tax return Contributions to an MSA Contributions to an Archer MSA must be made in cash. Amendment to tax return You cannot contribute stock or other property to an Archer MSA. Amendment to tax return Who can contribute to my Archer MSA?   If you are an employee, your employer may make contributions to your Archer MSA. Amendment to tax return (You do not pay tax on these contributions. Amendment to tax return ) If your employer does not make contributions to your Archer MSA, or you are self-employed, you can make your own contributions to your Archer MSA. Amendment to tax return Both you and your employer cannot make contributions to your Archer MSA in the same year. Amendment to tax return You do not have to make contributions to your Archer MSA every year. Amendment to tax return    If 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 cannot make contributions to your own Archer MSA that year. Amendment to tax return Limits There are two limits on the amount you or your employer can contribute to your Archer MSA: The annual deductible limit. Amendment to tax return An income limit. Amendment to tax return Annual deductible limit. Amendment to tax return   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. Amendment to tax return You must have the HDHP all year to contribute the full amount. Amendment to tax return If you do not qualify to contribute the full amount for the year, determine your annual deductible limit by using the worksheet in the Instructions for Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. Amendment to tax return Example 1. Amendment to tax return You have an HDHP for your family all year in 2013. Amendment to tax return The annual deductible is $5,000. Amendment to tax return You can contribute up to $3,750 ($5,000 × 75%) to your Archer MSA for the year. Amendment to tax return Example 2. Amendment to tax return You have an HDHP for your family for the entire months of July through December 2013 (6 months). Amendment to tax return The annual deductible is $5,000. Amendment to tax return You can contribute up to $1,875 ($5,000 × 75% ÷ 12 × 6) to your Archer MSA for the year. Amendment to tax return If 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. Amendment to tax return The contribution limit is split equally between you unless you agree on a different division. Amendment to tax return Income limit. Amendment to tax return   You cannot contribute more than you earned for the year from the employer through whom you have your HDHP. Amendment to tax return   If you are self-employed, you cannot contribute more than your net self-employment income. Amendment to tax return This is your income from self-employment minus expenses (including the deductible part of self-employment tax). Amendment to tax return Example 1. Amendment to tax return Noah Paul earned $25,000 from ABC Company in 2013. Amendment to tax return Through ABC, he had an HDHP for his family for the entire year. Amendment to tax return The annual deductible was $5,000. Amendment to tax return He can contribute up to $3,750 to his Archer MSA (75% × $5,000). Amendment to tax return He can contribute the full amount because he earned more than $3,750 at ABC. Amendment to tax return Example 2. Amendment to tax return Westley Lawrence is self-employed. Amendment to tax return He had an HDHP for his family for the entire year in 2013. Amendment to tax return The annual deductible was $5,000. Amendment to tax return Based on the annual deductible, the maximum contribution to his Archer MSA would have been $3,750 (75% × $5,000). Amendment to tax return However, after deducting his business expenses, Joe's net self-employment income is $2,500 for the year. Amendment to tax return Therefore, he is limited to a contribution of $2,500. Amendment to tax return Individuals enrolled in Medicare. Amendment to tax return   Beginning with the first month you are enrolled in Medicare, you cannot contribute to an Archer MSA. Amendment to tax return However, you may be eligible for a Medicare Advantage MSA, discussed later. Amendment to tax return When To Contribute You can make contributions to your Archer MSA for 2013 until April 15, 2014. Amendment to tax return Reporting Contributions on Your Return Report all contributions to your Archer MSA on Form 8853 and file it with your Form 1040 or Form 1040NR. Amendment to tax return You should include all contributions you, or your employer, made for 2013, including those made by April 15, 2014, that are designated for 2013. Amendment to tax return 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. Amendment to tax return Your employer's contributions should be shown in box 12 of Form W-2, Wage and Tax Statement, with code R. Amendment to tax return Follow the instructions for Form 8853 and complete the worksheet in the instructions. Amendment to tax return Report your Archer MSA deduction on Form 1040 or Form 1040NR. Amendment to tax return Excess contributions. Amendment to tax return   You will have excess contributions if the contributions to your Archer MSA for the year are greater than the limits discussed earlier. Amendment to tax return Excess contributions are not deductible. Amendment to tax return Excess contributions made by your employer are included in your gross income. Amendment to tax return If the excess contribution is not included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return. Amendment to tax return   Generally, you must pay a 6% excise tax on excess contributions. Amendment to tax return See Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. Amendment to tax return The excise tax applies to each tax year the excess contribution remains in the account. Amendment to tax return   You may withdraw some or all of the excess contributions and not pay the excise tax on the amount withdrawn if you meet the following conditions. Amendment to tax return You withdraw the excess contributions by the due date, including extensions, of your tax return. Amendment to 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. Amendment to tax return Deducting an excess contribution in a later year. Amendment to tax return   You may be able to deduct excess contributions for previous years that are still in your Archer MSA. Amendment to tax return The excess contribution you can deduct in the current year is the lesser of the following two amounts. Amendment to tax return Your maximum Archer MSA contribution limit for the year minus any amounts contributed to your Archer MSA for the year. Amendment to tax return The total excess contributions in your Archer MSA at the beginning of the year. Amendment to tax return   Any excess contributions remaining at the end of a tax year are subject to the excise tax. Amendment to tax return See Form 5329. Amendment to tax return 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. Amendment to tax return When you pay medical expenses during the year that are not reimbursed by your HDHP, you can ask the trustee of your Archer MSA to send you a distribution from your Archer MSA. Amendment to tax return You can receive tax-free distributions from your Archer MSA to pay for qualified medical expenses (discussed later). Amendment to tax return 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. Amendment to tax return You do not have to make withdrawals from your Archer MSA each year. Amendment to tax return If you no longer qualify to make contributions, you can still receive tax-free distributions to pay or reimburse your qualified medical expenses. Amendment to tax return A distribution is money you get from your Archer MSA. Amendment to tax return 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. Amendment to tax return Qualified medical expenses. Amendment to tax return   Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. Amendment to tax return These are explained in Publication 502. Amendment to tax return   Also, non-prescription medicines (other than insulin) are not considered qualified medical expenses for MSA purposes. Amendment to tax return A medicine or drug will be a qualified medical expense for MSA purposes only if the medicine or drug: Requires a prescription, Is available without a prescription (an over-the-counter medicine or drug) and you get a prescription for it, or Is insulin. Amendment to tax return   Qualified medical expenses are those incurred by the following persons. Amendment to tax return You and your spouse. Amendment to tax return All dependents you claim on your tax return. Amendment to 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 $3,900 or more, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Amendment to tax return    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. Amendment to tax return    You cannot 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. Amendment to tax return Special rules for insurance premiums. Amendment to tax return   Generally, you cannot treat insurance premiums as qualified medical expenses for Archer MSAs. Amendment to tax return 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. Amendment to tax return Health coverage tax credit. Amendment to tax return   You cannot claim this credit for premiums that you pay with a tax-free distribution from your Archer MSA. Amendment to tax return See Publication 502 for information on this credit. Amendment to tax return Deemed distributions from Archer MSAs. Amendment to tax return   The following situations result in deemed taxable distributions from your Archer MSA. Amendment to tax return You engaged in any transaction prohibited by section 4975 with respect to any of your Archer MSAs at any time in 2013. Amendment to tax return Your account ceases to be an Archer MSA as of January 1, 2013, and you must include the fair market value of all assets in the account as of January 1, 2013, on Form 8853. Amendment to tax return You used any portion of any of your Archer MSAs as security for a loan at any time in 2013. Amendment to tax return You must include the fair market value of the assets used as security for the loan as income on Form 1040 or Form 1040NR. Amendment to tax return   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. Amendment to tax return   Any deemed distribution will not be treated as used to pay qualified medical expenses. Amendment to tax return These distributions are included in your income and are subject to the additional 20% tax, discussed later. Amendment to tax return Recordkeeping. Amendment to tax return You must keep records sufficient to show that: The distributions were exclusively to pay or reimburse qualified medical expenses, The qualified medical expenses had not been previously paid or reimbursed from another source, and The medical expenses had not been taken as an itemized deduction in any year. Amendment to tax return Do not send these records with your tax return. Amendment to tax return Keep them with your tax records. Amendment to tax return 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). Amendment to tax return If you use a distribution from your Archer MSA for qualified medical expenses, you do not pay tax on the distribution but you have to report the distribution on Form 8853. Amendment to tax return Follow the instructions for the form and file it with your Form 1040 or Form 1040NR. Amendment to tax return If you do not use a distribution from your Archer MSA for qualified medical expenses, you must pay tax on the distribution. Amendment to tax return Report the amount on Form 8853 and file it with your Form 1040 or Form 1040NR. Amendment to tax return You may have to pay an additional 20% tax, discussed later, on your taxable distribution. Amendment to tax return If an amount (other than a rollover) is contributed to your Archer MSA this year (by you or your employer), you also must 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 is not covered by an HDHP, or is also covered by another health plan that is not an HDHP, at the time the expenses are incurred. Amendment to tax return Rollovers. Amendment to tax return   Generally, any distribution from an Archer MSA that you roll over into another Archer MSA or an HSA is not taxable if you complete the rollover within 60 days. Amendment to tax return An Archer MSA and an HSA can only receive one rollover contribution during a 1-year period. Amendment to tax return See the Form 8853 instructions for more information. Amendment to tax return Additional tax. Amendment to tax return   There is a 20% additional tax on the part of your distributions not used for qualified medical expenses. Amendment to tax return Figure the tax on Form 8853 and file it with your Form 1040 or Form 1040NR. Amendment to tax return Report the additional tax in the total on Form 1040 or Form 1040NR. Amendment to tax return Exceptions. Amendment to tax return   There is no additional tax on distributions made after the date you are disabled, reach age 65, or die. Amendment to tax return Balance in an Archer MSA An Archer MSA is generally exempt from tax. Amendment to tax return 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. Amendment to tax return Amounts that remain at the end of the year are generally carried over to the next year (see Excess contributions , earlier). Amendment to tax return Earnings on amounts in an Archer MSA are not included in your income while held in the Archer MSA. Amendment to tax return Death of the Archer MSA Holder You should choose a beneficiary when you set up your Archer MSA. Amendment to tax return What happens to that Archer MSA when you die depends on whom you designate as the beneficiary. Amendment to tax return Spouse is the designated beneficiary. Amendment to tax return   If your spouse is the designated beneficiary of your Archer MSA, it will be treated as your spouse's Archer MSA after your death. Amendment to tax return Spouse is not the designated beneficiary. Amendment to tax return   If your spouse is not 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. Amendment to tax return   If your estate is the beneficiary, the fair market value of the Archer MSA will be included on your final income tax return. Amendment to 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. Amendment to tax return Filing Form 8853 You must file Form 8853 with your Form 1040 or Form 1040NR if you (or your spouse, if married filing a joint return) had any activity in your Archer MSA during the year. Amendment to tax return You must file the form even if only your employer or your spouse's employer made contributions to the Archer MSA. Amendment to tax return 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. Amendment to tax return Enter “statement” at the top of each Form 8853 and complete the form as instructed. Amendment to tax return Next, complete a controlling Form 8853 combining the amounts shown on each of the statement Forms 8853. Amendment to tax return Attach the statements to your tax return after the controlling Form 8853. Amendment to tax return Employer Participation This section contains the rules that employers must follow if they decide to make Archer MSAs available to their employees. Amendment to tax return Unlike the previous discussions, “you” refers to the employer and not to the employee. Amendment to tax return Health plan. Amendment to tax return   If you want your employees to be able to have an Archer MSA, you must make an HDHP available to them. Amendment to tax return You can provide no additional coverage other than those exceptions listed previously under Other health coverage . Amendment to tax return Contributions. Amendment to tax return   You can make contributions to your employees' Archer MSAs. Amendment to tax return You deduct the contributions on the “Employee benefit programs” line of your business income tax return for the year in which you make the contributions. Amendment to tax return If you are filing Form 1040, Schedule C, this is Part II, line 14. Amendment to tax return Comparable contributions. Amendment to tax return   If you decide to make contributions, you must make comparable contributions to all comparable participating employees' Archer MSAs. Amendment to tax return 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. Amendment to tax return Comparable participating employees. Amendment to tax return   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). Amendment to tax return Excise tax. Amendment to tax return   If you made contributions to your employees' Archer MSAs that were not comparable, you must pay an excise tax of 35% of the amount you contributed. Amendment to tax return Employment taxes. Amendment to tax return   Amounts you contribute to your employees' Archer MSAs are generally not subject to employment taxes. Amendment to tax return You must report the contributions in box 12 of the Form W-2 you file for each employee. Amendment to tax return Enter code “R” in box 12. Amendment to tax return 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. Amendment to tax return To be eligible for a Medicare Advantage MSA, you must be enrolled in Medicare and have a high deductible health plan (HDHP) that meets the Medicare guidelines. Amendment to tax return 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. Amendment to tax return The money in your account is not taxed if it is used for qualified medical expenses, and it may earn interest or dividends. Amendment to tax return An HDHP is a special health insurance policy that has a high deductible. Amendment to tax return You choose the policy you want to use as part of your Medicare Advantage MSA plan. Amendment to tax return However, the policy must be approved by the Medicare program. Amendment to tax return Medicare Advantage MSAs are administered through the federal Medicare program. Amendment to tax return You can get information by calling 1-800-Medicare (1-800-633-4227) or through the Internet at www. Amendment to tax return medicare. Amendment to tax return gov. Amendment to tax return Note. Amendment to tax return You must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your tax return if you have a Medicare Advantage MSA. Amendment to tax return Flexible Spending Arrangements (FSAs) A health flexible spending arrangement (FSA) allows employees to be reimbursed for medical expenses. Amendment to tax return FSAs are usually funded through voluntary salary reduction agreements with your employer. Amendment to tax return No employment or federal income taxes are deducted from your contribution. Amendment to tax return The employer may also contribute. Amendment to tax return Note. Amendment to tax return Unlike HSAs or Archer MSAs which must be reported on Form 1040 or Form 1040NR, there are no reporting requirements for FSAs on your income tax return. Amendment to 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. Amendment to tax return What are the benefits of an FSA?   You may enjoy several benefits from having an FSA. Amendment to tax return Contributions made by your employer can be excluded from your gross income. Amendment to tax return No employment or federal income taxes are deducted from the contributions. Amendment to tax return Withdrawals may be tax free if you pay qualified medical expenses. Amendment to tax return See Qualified medical expenses , later. Amendment to tax return You can withdraw funds from the account to pay qualified medical expenses even if you have not yet placed the funds in the account. Amendment to tax return Qualifying for an FSA Health FSAs are employer-established benefit plans. Amendment to tax return These may be offered in conjunction with other employer-provided benefits as part of a cafeteria plan. Amendment to tax return Employers have complete flexibility to offer various combinations of benefits in designing their plan. Amendment to tax return You do not have to be covered under any other health care plan to participate. Amendment to tax return Self-employed persons are not eligible for an FSA. Amendment to tax return Certain limitations may apply if you are a highly compensated participant or a key employee. Amendment to tax return Contributions to an FSA You contribute to your FSA by electing an amount to be voluntarily withheld from your pay by your employer. Amendment to tax return This is sometimes called a salary reduction agreement. Amendment to tax return The employer may also contribute to your FSA if specified in the plan. Amendment to tax return You do not pay federal income tax or employment taxes on the salary you contribute or the amounts your employer contributes to the FSA. Amendment to tax return However, contributions made by your employer to provide coverage for long-term care insurance must be included in income. Amendment to tax return When To Contribute At the