IRS Releases Form & Instructions for Form 8889, HSA Reporting

The Internal Revenue Service (IRS) has posted 2025 tax year Instructions for Form 8889, Health Savings Accounts (HSAs). The IRS has also posted a draft 2025 tax year Form 8889, Health Savings Accounts (HSAs). Taxpayers file Form 8889 to report HSA contributions and associated tax deductions, as well as distributions and any tax or penalty owed for distributions not used for qualified expenses. 

The “What's New” section notes the following, pursuant to the One Big Beautiful Bill Act.

• An HSA eligible individual may have disregarded coverage (besides the high deductible health plan (HDHP)) for telehealth and other remote care.
• A plan will not fail to be treated as a HDHP by reason of failing to have a deductible for telehealth and other remote care services.
• The amendments apply to plan years beginning after 2024.