Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Federal input screens

Screen 1099SA - Health, Medical Account Distributions (1040)

Source data entry
Use the UltraTax CS Source Data Entry utility to enter data on facsimile versions of forms your clients submit for the preparation of their tax returns. Once the facsimile forms are completed, you can export the data and transfer it into your client data files via the data sharing feature. For more information including a list of available facsimiles, go to the UltraTax CS Source Data Entry overview.

1099SA Facsimile

UltraTax CS calculates any taxable distribution on Form 8853 or Form 8889 and transfers the taxable income to Schedule 1, line 8 (Form 1040). Additional tax on taxable distributions is calculated and transfers to Schedule 2, line 8 (Form 1040).
See State fields for more information.
One Form 8889 is required for each HSA account, and 1 Form 8853 is required for each MSA account. Contributions entered on the 5498SA screen and distributions entered on the 1099SA screen for the same account must have matching EIN numbers to be reported on the same form.
This field is mandatory.
The fields that have a plus sign (+) at the end of the field name aren't used in the tax return, but are available for the Data Mining feature. You don't need to enter information in fields marked with a plus sign unless the data in the field will be used for data mining purposes. Data will be shared to these fields from the Source Data Entry utility.
If there is more than 1 1099-SA from the same HSA account, sum the distributions and enter them in box 1. Leave the box 3 Distribution code blank and complete the additional information for all distributions.
For a 1099-SA with a box 3 distribution code of
2
, this amount will carry to Form 1040, Other income.
Enter the distribution code shown on the Form 1099SA. If this field is blank, UltraTax CS assumes a normal distribution.
If the distribution is due to the death of an account holder, enter the fair market value of the assets as of the account holder's date of death. If the distribution isn't due to the death of the account holder, don't enter anything in this field, not even 0 (zero).
Indicate the type of health or medical account being reported by placing an
X
 in the appropriate box. One of these options must be selected.

Additional Information

Mark this box if the entire amount of the gross distribution was used to pay unreimbursed qualified medical expenses, after rollovers and withdrawals of excess contributions. UltraTax CS will use the amount of the gross distribution less any rollover or withdrawal of excess contributions as the unreimbursed medical expenses on Form 8853, line 7 (or line 11 for a Medicare Advantage MSA), or Form 8889, line 15.
Enter the total unreimbursed qualified medical expenses if less than the total amount of the distributions. Enter excess unreimbursed qualified medical expenses in the A screen.
Enter the amount of any excess contributions that were withdrawn by the due date of the return, including extensions. UltraTax CS will automatically subtract this amount from the excess contributions calculated on Form 8889 Part I that transfer to Form 5329, line 47, or on Form 8853 Part I that transfer to Form 5329, line 39. A withdrawal of excess contributions will be included in Form 1099-SA box 1 Gross distribution when the box 3 Distribution code is 2.
Rollover contributions may be reported on Form 5498-SA but UltraTax CS doesn't automatically report any 5498-SA box 4 Rollover contribution.
UltraTax CS calculates exceptions to additional tax based on the distribution code. An entry here will override the calculated amount of distributions that qualify for the exception from the additional early distributions tax. The amount entered here is subtracted from the taxable distributions to arrive at the amount subject to the additional tax. UltraTax CS also marks the box on Form 8853 or Form 8889 showing that the taxpayer meets 1 of the exceptions. The additional tax doesn't apply to distributions made after the date the account holder dies, becomes disabled, or turns 65.
Enter all qualified medical expenses incurred by the account holder before the date of death and paid by the taxpayer within one year of the date of death. This field is disabled when the
All distributions were used to pay unreimbursed qualified medical expenses
 field is marked.
If the holder of a Medicare Advantage account took a distribution from that account and there is an amount that does not qualify for the exception to the 50% tax, enter the value of the account on 12/31/[[ut_cy_yy]] to calculate the additional 50% tax.

Form 8889 Maintenance of Coverage

Use this section to enter information relevant to the testing period in effect for contributions and qualified HSA funding distributions. Individuals who become covered under a high deductible health plan (HDHP) during the year and whose coverage extends for the month of December may make the full deductible contribution for the year. If the individual doesn't remain covered by the HDHP for the entire following year, any contributions in excess of what would've been allowed under part-year coverage are included in gross income. In addition, UltraTax CS automatically calculates the 10% additional tax, when applicable, and reports it on Schedule 2, line 8 (Form 1040).
If the HDHP coverage started in
2023
 and was in effect for the entire month of December,
2023
, enter
1
 if the HDHP coverage ended before December 31,
2024
, or enter
2
 if the coverage is still in effect. If coverage is still in effect, Form 8889, Part III doesn't calculate.
Enter the HSA deduction from
2023
 Form 8889, line 13.
Enter the limitation on the
2023
 HSA deduction from
2023
 Form 8889, line 12, if there were any employer contributions, MSA contributions, or qualified HSA funding distributions in
2023
 that reduced the amount allowed as an HSA deduction. Adjustments to the limitation due to varying allocations between spouses with family coverage or catch-up contributions can also be made in this field. Enter the total limitation for the year. UltraTax CS will calculate the reduced limit based on the dates coverage began and ended.
A qualified HSA distribution can be made from a health flexible spending arrangement or health reimbursement arrangement to fund an HSA, up to the full deductible contribution allowed in a year if the individual is covered by an HDHP for the month of December. The testing period for maintenance of coverage for the qualified HSA distribution goes to the last day of the 12th month after the date of the distribution.
UltraTax CS calculates the allowed amount based on the date of the distribution and the date HDHP coverage ended.
The testing period for maintenance of coverage for the qualified HFD goes to the last day of the 12th month after the date of the distribution.
Enter the amount of prior-year HSA deductions that qualify for the exception from the additional 10% tax. The additional 10% penalty doesn't apply when an individual ceases to be eligible for HDHP coverage by reason of death or disability.

1099-LTC Long Term Care Benefits

When
Require a password to display SSNs
 is marked in the
Setup
,
Security
,
Security Configuration
 tab, the Social Security number will display as ###-##-####. For more information about masking Social Security numbers, go to Masking SSNs for 1040 clients with preparers outside the U.S.
Format the name as "First name Last name, Suffix" (for example, John Smith, Jr). If the chronically ill individual is the taxpayer, enter
Self
 in this field.
Enter the total amount received for the insured entered in the
Name of insured chronically ill individual
 field from Form 1099-LTC box 1. Report the taxable amount of benefits paid under an LTC insurance contract that isn't a qualified LTC contract as income in the Other Income statement in the Income screen.
Enter the total amount received for accelerated death benefits (shown in box 2 of Form 1099-LTC) for the insured entered in the
Name of insured chronically ill individual
 field. Don't include amounts that were reimbursed.
Mark the appropriate checkbox to indicate if payments received were per diem payments or a reimbursed amount.
Form 8853 is only completed for distributions from qualified contracts. This box must be checked for Form 8853 to calculate completely. Benefits paid under an LTC insurance contract that isn't a qualified contract aren't reported on Form 8853.
Enter
1
 for yes, or
2
 for no, to indicate if more than 1 person received LTC payments under a qualified LTC insurance contract during
2024
 with respect to the name of the insured entered in the
Name of insured chronically ill individual
 field.
If the insured individual is terminally ill, enter
1
 for yes, or
2
 for no, to indicate if the only payments received during the year with respect to the insured entered in the
Name of insured chronically ill individual
 field were accelerated death benefits and were paid because of being terminally ill. If the insured isn't terminally ill, leave this field blank.
UltraTax CS multiplies the number entered by $360.
Enter the costs incurred for qualified LTC services provided for the insured entered in the
Name of insured chronically ill individual
 field during the LTC period.
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close