It would take a book to explain every thing there is to know about HSA and it is likely that it will all change due to the Health Care laws that recently passed. Basically you set up an account and report the contributions on IRS for 8889 as you would any distributions for health care expenses. The trustee sends you a form 5498-SA to confirm what was contributed and distributed. The results of form 8889 is transferred to form 1040 line 25 as an adjustment to income, thus reducing your taxable income.
It would take a book to explain every thing there is to know about HSA and it is likely that it will all change due to the Health Care laws that recently passed. Basically you set up an account and report the contributions on IRS for 8889 as you would any distributions for health care expenses. The trustee sends you a form 5498-SA to confirm what was contributed and distributed. The results of form 8889 is transferred to form 1040 line 25 as an adjustment to income, thus reducing your taxable income.
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