IRS Instruction 8889 – IRS Forms, Instructions, Pubs 2026 – Health Savings Accounts (HSAs) offer a tax-advantaged way to save for medical expenses, and IRS Form 8889 is essential for reporting contributions, deductions, and distributions. If you’re navigating HSA rules for the 2025 tax year, understanding the instructions for Form 8889 can help you maximize benefits while avoiding penalties. This guide breaks down everything you need to know, including who must file, how to complete the form, contribution limits, and recent updates.
What Is IRS Form 8889 and Its Purpose?
Form 8889, titled “Health Savings Accounts (HSAs),” is used to report activity related to your HSA. It allows taxpayers to:
- Report contributions made to an HSA (including those by employers or others).
- Calculate the HSA deduction on your tax return.
- Report distributions from the HSA.
- Determine any additional income or taxes owed if you fail to maintain eligibility under a High Deductible Health Plan (HDHP).
The form must be attached to your Form 1040, 1040-SR, or 1040-NR. For detailed guidance, refer to Publication 969, “Health Savings Accounts and Other Tax-Favored Health Plans.”
Who Must File Form 8889?
You are required to file Form 8889 if any of the following apply for the 2025 tax year:
- You (or someone on your behalf, like an employer) made contributions to your HSA.
- You received distributions from your HSA.
- You acquired an interest in an HSA due to the death of the account beneficiary.
- You failed to remain an eligible individual during a required testing period, leading to includible income.
Even if you have no taxable income or no other reason to file a tax return, you must still submit Form 8889 if you or your spouse received HSA distributions. Spouses with separate HSAs must each file their own Form 8889 if filing jointly.
Filing Deadlines for HSA Contributions and Form 8889
For 2025 HSA contributions, you can contribute up to the annual limit until April 15, 2026 (the due date for your 2025 federal income tax return). If you’re in a combat zone or contingency operation, extended deadlines may apply. Excess contributions can be withdrawn by your return’s due date (including extensions) to avoid penalties, or within six months afterward with an amended return.
Form 8889 itself is filed with your 2025 tax return, typically due April 15, 2026.
HSA Eligibility and HDHP Requirements for 2025
To contribute to an HSA, you must be an eligible individual: covered by an HDHP with no disqualifying health coverage (except permitted types like dental, vision, or long-term care), not enrolled in Medicare, and not claimed as a dependent on another’s tax return.
HDHP requirements for 2025 include:
| Coverage Type | Minimum Annual Deductible | Maximum Annual Out-of-Pocket Expenses |
|---|---|---|
| Self-Only | $1,650 | $8,300 |
| Family | $3,300 | $16,600 |
Certain coverages are disregarded, such as telehealth and remote care services (new for plan years after 2024 under P.L. 119-21). Preventive care like over-the-counter contraceptives, male condoms, breast cancer screenings, continuous glucose monitors, and insulin can be provided without a deductible.
If you’re eligible on December 1, 2025, you’re considered eligible for the entire year under the “last-month rule,” but a 12-month testing period applies to avoid penalties if coverage lapses.
2025 HSA Contribution Limits
The IRS sets annual limits on HSA contributions, adjusted for inflation. For 2025:
| Coverage Type | Standard Limit | Catch-Up (Age 55+ by Year-End) |
|---|---|---|
| Self-Only | $4,300 | +$1,000 (total $5,300) |
| Family | $8,550 | +$1,000 (total $9,550 if unmarried) |
These limits include all contributions (yours, employer, or others), reduced by employer contributions or qualified HSA funding distributions from an IRA. If married with family coverage, allocate the limit equally or by agreement between spouses. Use the Line 3 Limitation Chart and Worksheet if eligibility or coverage changed during the year or if enrolled in Medicare.
Excess contributions are subject to a 6% excise tax (reported on Form 5329) unless withdrawn timely.
How to Fill Out Form 8889: Step-by-Step?
Form 8889 has three parts. Here’s a breakdown:
Part I: HSA Contributions and Deduction
This section calculates your allowable deduction.
- Line 1: Check self-only or family HDHP coverage based on the longer period in 2025.
- Line 2: Enter your personal contributions (exclude employer ones or rollovers).
- Line 3: Enter the limit ($4,300 self-only, $8,550 family); adjust using the worksheet if needed.
- Lines 4-8: Handle Archer MSA contributions, spousal allocations, and catch-up amounts.
- Line 9: Employer contributions (from Form W-2, box 12, code W).
- Line 10: Qualified HSA funding distributions from IRAs.
- Line 13: Your HSA deduction (transfers to Schedule 1, line 13 of Form 1040).
Part II: HSA Distributions
Report withdrawals here.
- Line 14a: Total distributions (from Form 1099-SA).
- Line 14b: Rollovers or returned excess contributions.
- Line 15: Amounts used for qualified medical expenses (unreimbursed costs like those in Pub. 502, including menstrual products, condoms, COVID-19 tests/PPE).
- Line 16: Taxable distributions (not for qualified expenses).
- Lines 17a-b: 20% additional tax on line 16, unless exceptions apply (e.g., age 65+, disability, death).
Qualified expenses include premiums for COBRA, long-term care, or Medicare (if age 65+), but not before HSA establishment.
Part III: Income and Additional Tax for Failure to Maintain HDHP Coverage
If you fail the testing period under the last-month rule:
- Line 18: Excess contributions included in income.
- Line 19: Qualified funding distributions.
- Add 10% tax on these amounts (reported on Schedule 2).
Penalties and Special Rules
- Excess Contributions: 6% tax on amounts not withdrawn by deadline.
- Nonqualified Distributions: Included in income plus 20% tax (exceptions for death, disability, or age 65).
- Prohibited Transactions: Deemed distributions (e.g., using HSA as loan security) trigger income inclusion and 20% tax.
- Rollovers: Tax-free if completed within 60 days; one per year per HSA.
- Death of Beneficiary: Surviving spouse treats as own HSA; others report fair market value as income (no 20% tax).
- Spouses and Archer MSAs: Special allocation rules; rollovers from Archer MSAs allowed.
Recent Updates to Form 8889 for 2025
The 2025 instructions include changes from P.L. 119-21 (effective for plan years after 2024), allowing disregarded coverage for telehealth/remote care without disqualifying HDHP status. Notice 2024-75 expands preventive care to include over-the-counter contraceptives, male condoms, all breast cancer screenings, glucose monitors for diabetes, and insulin without diagnosis. Notice 2024-71 treats condom expenses as qualified medical care.
The final 2025 Form 8889 was posted in December 2025. Always check IRS.gov for the latest version.
Tips for Maximizing Your HSA
- Contribute pre-tax through payroll to reduce taxable income.
- Use HSAs for long-term savings—funds roll over indefinitely and can be invested.
- Track qualified expenses carefully to avoid taxes on distributions.
- Consult a tax professional if you have complex situations, like spousal HSAs or Medicare enrollment.
By following these IRS Form 8889 instructions, you can ensure compliance and make the most of your HSA for 2025. For personalized advice, visit IRS.gov or speak with a tax advisor.