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Screen 1099SA - Health, Medical Account Distributions (1040)
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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).
State
See State fields for more information.
EIN
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.
Trustee Name
This field is mandatory.
Fields not used in tax preparation
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.
Gross distribution
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.
Earnings on excess contributions
For a 1099-SA with a box 3 distribution code of
2
, this amount will carry to Form 1040, Other income.note
If the distribution is a withdrawal of excess contributions made by the due date of the return, enter the amount of the withdrawal in the
Withdrawal of excess contributions by the due date of the return
field. UltraTax CS automatically subtracts this amount from the calculated excess contributions that transfer to Form 5329, line 39 or line 47.Distribution code
Enter the distribution code shown on the Form 1099SA. If this field is blank, UltraTax CS assumes a normal distribution.
note
Forms 1099-SA coded 4 or 6 use the box 4,
FMV on date of death
amount for Form 8853, line 6a or Form 8889, line 14a. If the box 1 Gross distribution
amount is larger, the difference represents earnings on the account after the date of death and will be included with the taxable distributions reported on Schedule 1, line 8 (Form 1040).FMV on date of death
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).
HSA (Form 8889) / Archer MSA (Form 8853) / Medicare Advantage MSA (Form 8853)
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
All distributions were used to pay unreimbursed qualified medical expenses
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.
note
- Unreimbursed medical expenses paid with distributions from an HSA or MSA don't qualify for a deduction on Schedule A, line 1.
- If this field is marked, theAmount of unreimbursed qualified medical expenses, if less than gross distributionandIf distribution due to death of account holder, enter qualified decedent medical expensesfields will be disabled.
Amount of unreimbursed qualified medical expenses...
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.
note
The amount entered in this field doesn't qualify for a deduction on Schedule A, line 1. This field is disabled when the
All distributions were used to pay unreimbursed qualified medical expenses
field is marked.Withdrawal of excess contributions by the due date of the return
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.
Portion of gross distribution rolled over
Rollover contributions may be reported on Form 5498-SA but UltraTax CS doesn't automatically report any 5498-SA box 4 Rollover contribution.
Amount of exceptions to additional tax (Force)
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.
note
UltraTax CS will automatically apply the exception for a taxpayer age 66 or older, but in the year the taxpayer turns 65 the exception only applies to distributions made after the date they attain age 65. The exception amount will need to be determined for distributions made after that date. UltraTax CS will generate an FYI diagnostic if there's no exception amount entered and the taxpayer turns 65 in that tax year.
If distribution due to death of account holder...
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 MA (Medicare Advantage) MSA, enter value of account...
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).
High deductible health plan coverage ended before 12/31/
2025
If the HDHP coverage started in
2024
and was in effect for the entire month of December, 2024
, enter 1
if the HDHP coverage ended before December 31, 2025
, or enter 2
if the coverage is still in effect. If coverage is still in effect, Form 8889, Part III doesn't calculate.Total HSA deductions for
2024
Enter the HSA deduction from
2024
Form 8889, line 13.HSA Limitation for
2024
(Force)Enter the limitation on the
2024
HSA deduction from 2024
Form 8889, line 12, if there were any employer contributions, MSA contributions, or qualified HSA funding distributions in 2024
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.Qualified HSA distributions
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.
Date of qualified HSA funding distribution
UltraTax CS calculates the allowed amount based on the date of the distribution and the date HDHP coverage ended.
Qualified HSA funding distribution
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.
Amount of HSA exceptions for 10% tax
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
Insured's social security number
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. note
The tax application will combine onto Form 8853 Section C any units of 1099-LTC with: matching T/S designation;
EIN
; Insured's social security number
; 1099-LTC facsimile Box 5; If the insured is terminally ill, were payments received on account of terminal illness?
; and Number of days during the long-term care period
.Insured's name
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.Gross long-term care benefits paid
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.Accelerated death benefits paid
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.Check one: Per diem or Reimbursed amount
Mark the appropriate checkbox to indicate if payments received were per diem payments or a reimbursed amount.
Qualified contract
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.
note
UltraTax CS won't calculate Form 8853, Section C if Qualified contract in Box 4 isn't marked.
Are there other individuals who received LTC payments during
2025
?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 2025
with respect to the name of the insured entered in the Name of insured chronically ill individual
field.If the insured is terminally ill, were payments received...
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.Number of days during the long-term care period
UltraTax CS multiplies the number entered by $360.
Costs incurred for qualified LTC services during LTC period
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.