Video instructions and help with filling out and completing form 8889 example

Instructions and Help about form 8889 example

Want to save money on taxes it's easy with your opt-in Bank health savings account or HSA with your HSA you can save on taxes three different ways first contributions to your HSA go in income tax free second any money you take out of your account to pay for qualified medical expenses is also income tax free third any money you save or invest grows income tax free and what happens when you make a post to tax contribution to your HSA don't worry you'll receive those tax benefits at tax time when you file your income taxes add it all up and it's more money for you and less for Uncle Sam when it comes time to do your taxes you'll have to gather some information about your HSA it's actually pretty easy you basically need to know about three IRS forms linked to health savings accounts form 1099 SI tells you the total distributions or payments that were made from your HSA form 5498 sa summarizes the contributions for deposits you made to your HSA in a particular tax year you can also find your contribution information on your December HSA statement form 88-89 this is the form you'll actually submit with your federal income tax return this can be filled out using the information from your 1099 si and 5498 si keep in mind everyone receives form 5498 but you only receive form 1099 if you had distributions that year if you didn't reach your maximum contribution limit but want to capitalize on the tax savings it's no problem you generally have until the tax filing deadline to make a contribution to your HSA for the previous tax year another tax tip make sure you understand the HSA rules where you live certain states have special rules regarding HSAs so it's a good idea to touch base with a tax advisor to ensure you're filing your taxes correctly and you can always find additional helpful resources online at irs.gov or at optin bank.com save smart to save tax free with your optimal savings account

FAQ

What is HSA (Health Savings Account) Recalculation?
A Health Savings Account (HSA) recalculation refers to the process of determining the allowable contributions a taxpayer can make in accordance with their eligibility. Essentially the IRS wants to make sure that individuals do not participate in a High Deductible Health Plan (HDHP) for a small portion of the year in order to make full contributions to an HSA, only to have them switch out to another type of health plan.To guard against gaming the system, the IRS imposes two rules:1. Partial Contributions for eligible periods. This mainly applies to partial year participants in qualified health plans. Taxpayers can pro-rate their eligible contribution amount based upon the number of months they were covered under a qualified plan. For the month to count you must be eligible as of the first day of the month. The IRS includes a worksheet on their Instructions for Form 8889.2. Last-month rule. The first point notwithstanding, if you are an eligible individual on the first day of the last month of the tax year (Dec 1st for most), then you are considered an eligible individual for the entire year. THE CATCH – YOU MUST REMAIN AN ELIGIBLE INDIVIDUAL FOR THE NEXT 12 MONTHS. This is referred to as the “testing period.” If you over-contribute as a result of failing to participate in a qualified plan not only must you recalculate your last-month rule contribution, you will also owe an additional 10% penalty on the overage.If this sounds daunting, fear not - the IRS included a full description of the contribution conditions as well as examples of the calculation in IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. If you open it up you are likely to learn a bit more about HSAs, which will be to your benefit.Note – we built an app, HSA Coach, to educate users on Health Savings Accounts, as well as assist them with keeping track of contributions and withdrawals, as well as record keeping. The above sounds all very confusing, particularly as you move from employer to employer or even as your employer switches HSA providers, which happens often. We have some financial planning calculators to help plan contributions, and even compare to other employer plans, like a 401(k) [I’m a CFP® and we couldn’t help ourselves…]. Finally, we back up to Dropbox should you use that cloud service as a document storage solution. More at HSA Coach.
How do you host a website locally in your personal network?
If it is a static website1. Open Terminal2. cd into the root directory of the website.3. Run , python -m simpleHTTPServer 8000This will start a web server on localhost:8000Now any device in the same network can access the website by using ipaddress:8000 in their browser. Eg: 192.168.4.15:8000Using MAMP should have worked on any computer on the same network using http://ipaddresofserver/DirectoryEg : http://192.168.4.15/mywebsite