Form 1099-SA — Distributions From an HSA, Archer MSA, or Medicare Advantage MSA

This skill helps a taxpayer who has received a Form 1099-SA in the mail (or as a downloadable PDF from their HSA custodian) interpret the boxes, classify each distribution as qualified or non-qualified, compute the taxable portion and any 20% additional tax, and report the result on Form 8889 (HSA) or Form 8853 (Archer / MA MSA).

The custodian sends Form 1099-SA by January 31 of the year following the distribution year. The recipient files the recipient copy as supporting documentation (not attached to the return itself; e-filed returns retain it electronically). The actual tax reporting happens on Form 8889 Part II or Form 8853 Part II.

The agent's job: read the boxes, classify the distribution code, ask the user about qualified medical expenses, and produce a Form 8889 Part II (or Form 8853 Part II) draft.

When to invoke

Engage this skill when any of the following is true:

• The user mentions receiving a Form 1099-SA (in the mail, by email PDF, or as a tax-document download from Fidelity / HealthEquity / Lively / Optum / WEX / etc.)
• The user took a withdrawal from their HSA during the tax year (even if they used the HSA debit card at a pharmacy — every swipe is a distribution)
• The user asks "what's a 1099-SA", "how do I report my HSA distribution", "I withdrew from my HSA, what now"
• The user is in the middle of completing Form 8889 and has reached Part II (Distributions)