The Florida Department of Management Services' 1.1 million customers include: state agencies, state employees, state retirees, universities, community colleges, and local governments and their retirees. Residents, visitors and businesses of Florida are also consumers of DMS products and services.
Reporting Your HSA On Your Taxes Tax reporting is required if you have a Health Savings Account (HSA). You may be required to complete IRS Form 8889. HSA Bank provides you with the information and resources to assist you in completing IRS Form 8889 regarding your HSA.eporting Your HSA On Your Taxes Tax reporting is required if you have a Health Savings Account (HSA). You may be required to complete IRS Form 8889. HSA Bank provides you with the information and resources to assist you in completing IRS Form 8889 regarding your HSA.
Reporting to the IRS. To take advantage of your HSAs tax benefits, you'll have to report your HSA activity to the IRS. It's up to you to keep track of receipts for expenses you pay for with your HSA. You'll get tax forms that detail your distributions for the year. If any of your distributions were used for non-qualified medical expenses, you are responsible for: Reporting that to the IRS on IRS Form 8889; Paying income taxes on the amount; Possibly paying an additional 20 percent penalty; Special tax implications. Keep in mind the following scenarios that can affect how your HSA is taxed: 1  Transfers - If you choose to transfer funds from one HSA to another, you must do so within 60 days of withdrawing the funds to avoid a 10 percent tax penalty. Excess contributions - If you contribute more than the allowable amount to your HSA by accident or because you ended coverage in a qualified health plan, you will have to count the extra amount as taxable income and pay a 6 percent penalty. To avoid paying taxes and incurring a penalty, you can fill out an Excess Contribution and Deposit Correction Request Form to have excess funds returned to you. This and other account forms are available after you log in.