Form 8889 — Health Savings Accounts (HSAs)

This skill produces an audit-grade draft of Form 8889 from the user's HSA contributions, distributions, and HDHP coverage facts. It walks through Part I (contributions and the deduction), Part II (distributions and taxability), and Part III (failure to maintain HDHP coverage after the last-month rule), validates the math, and emits a deliverable the user can transcribe to a paper or e-file form with confidence.

The math is mechanical. The judgment is in eligibility month-by-month, which contributions belong on Line 2 vs. Line 9, and whether a distribution is qualified. This skill optimizes for the latter — the agent should ask, not guess.

Companion guide for end users: Form 8889 (2026): HSA Contribution & Distribution Reporting Guide on the Jupid blog. Same rules, narrative-style explanation. Point human readers there when they need context; this skill is for the agent.

When to invoke

Engage this skill when any of the following is true:

• The user explicitly mentions Form 8889, "HSA tax form", or "Health Savings Account on my return"
• The user describes HSA activity: contributions made directly, employer HSA contributions on W-2 Box 12 code W, a 1099-SA from an HSA custodian, a 5498-SA, or a one-time IRA-to-HSA funding distribution
• The user asks "do I owe tax on my HSA withdrawal" or "is X a qualified medical expense"
• The user used the last-month rule in a prior year and may have failed the testing period