Article: 50010
Form 5498 is for informational purposes only and is not used to file your taxes. It shows your IRA Contributions for the year and must be sent to you by the IRA Custodian (the financial institution that holds your account) by May 31.
IRA Contributions
Any IRA contributions made for the tax year that are deductible are reported on Form 1040, Schedule 1, Part II Adjustments to income. When you go through the Federal > Deductions and Credits walk-through, you will be prompted to enter your total IRA contributions on Form 8606, Part I, in the field Total traditional IRA contributions you made for the current tax year.
Non-Deductible IRA Contributions
If you made any IRA contributions that are not deductible, you will enter those contributions both in the total field mentioned above with any deductible contributions, and separately in the field Nondeductible contributions made to traditional IRAs for the current tax year (including those made for that year before April 15th of the next year).
Form 8606, Part I will keep track of your basis to ensure that you aren’t taxed on the basis portion (your non-deductible contributions) of your IRA account when you start taking distributions. You may see other fields on this screen that also apply; for example, if you filed a Form 8606 last year and need to enter the total basis of your IRAs as of the end of the prior tax year. Complete the necessary fields that apply to your tax situation and click the Save button.
When you review your tax forms prior to filing, you’ll want to review Form 8606, Form 1040 – Schedule 1 Part II Adjustments to Income, and any related worksheets that are generated. Keep in mind that Form 8606 is not always required.
HSA Contributions
Form 5498-SA reports HSA contributions and expenses for the year. It is not used to file your taxes; it’s for informational purposes only.
Information
We’ll ask you about your HSA contributions during the walk-through; if you missed it, you can access the HSA screen by following these steps:
- Go to Federal Taxes > Review.
- Click I’d like to see the forms I’ve filled out or search for a form.
- Type HSA in the search box.
- Click Add form beside Health Savings Account.
- Follow the walk-through. It will prompt you for information on both contributions and distributions.
- Click Save.
Pre-Tax Contributions
Contributions made to your HSA through payroll deduction are taken prior to paying taxes, thus no deduction can be taken on your tax return. These will show up on Form W-2, Box 12, code W.
Deductible Contributions
If you contribute to your HSA with after-tax money, you may be able to deduct those contributions on your return.
Preview Return
Go to File and click Free Return Preview to generate the Preview PDF. Form 8889 will be filed with your taxes to report your contributions and determine any HSA deduction; the HSA deduction shows up in Part 1 and carries to Form 1040, Schedule 1, Part II Adjustments to Income. The non-qualifying expenses portion carries to Form 1040, Schedule 1, Part 1 Additional Income (HSA literal) to be taxed as income. Any penalty amount carries to Form 1040, Schedule 2, Part II Other Taxes.
MSA Contributions
If you make contributions to a Medical Savings Account (MSA), you may be able to deduct those contributions on your return. Distributions from your MSA must be used for qualified, unreimbursed medical expenses or you may be subject to additional taxes and a penalty.
Information
To enter your MSA information, follow these steps:
- Go to Federal Taxes > Review
- Click I’d like to see the forms I’ve filled out or search for a form.
- Type MSA in the search box.
- Click Add form beside Form 8853 – Medical Savings Account (MSA).
- Follow the walk-through. It will prompt you for information on both contributions and distributions.
- Click Save.
Contributions
If your employer made contributions, the amount should be on your W-2, line 12, code R. This amount will carry automatically to Form 8853. Enter any contributions you made in the field Your contribution to MSA, not including rollovers, and enter the number of months you were in the plan.
Distributions
Enter your distributions in the field Total distributions received in from all Archer MSA accounts, (both taxpayers). If any amount was rolled over, enter that amount in the next field. Next, enter your Total unreimbursed qualified medical expenses. Based on this information, we will be able to determine if the distributions were used for anything other than qualified medical expenses; and calculate any additional taxes or penalty, if applicable.
Preview Return
Go to File and click Free Return Preview to generate the Preview PDF and view Form 8853 to verify the MSA deduction in Part 1. The deduction amount will carry to Form 1040 Schedule 1, Part II, line 22.
Any additional tax and penalty amounts, if applicable based on the use of your distributions, will show in Part II and carry to Form 1040, Schedule 2. A Form 5329 may also be generated, with applicable “additional tax” calculated on page 2, part VI.