Taxpayer sometimes worries that HSA might make their taxes excessively complicated.

There's no "one-size-fits-all" when it comes to taxes, but contributing to an HSA is not going to add much complexity to your tax situation. 

To start with, the reporting requirement of HAS covers four forms.

1. Form 5498-SA: 

   Form 5498-SA reports regular and rollover contributions on health savings accounts (HSAs), Archer Medical Savings Accounts (MSAs), and Medicare Advantage MSAs (MA MSAs) as well as the fair market value of an HSA, Archer MSA, or MA MSA at the end of 2019.

   Form 5498-SA is for informational purposes only; you do not need to file it with your tax return.7

   The W-2 you receive from your employer in January should match Form 5498-SA unless you made contributions outside of your employer or between January 1,2021, and April 15, 2021, for the 2020 tax year. Note: After-tax contributions will not appear on your W-2, but will be reflected on Form 5498-SA.

2. Form 1099-SA: Form 1099-SA is an IRS form issued by the HSA custodian to the HSA account beneficiary. This form provides withdrawal from the HSA account.
3. Form 8889: Form 8889, the taxpayer need to file along with Form 1040. This form comes with three parts. Part I is where the taxpayer reports contributions to the taxpayer’s HAS. Part II is where taxpayer report distributions (withdrawals) out of HAS. Part III is where the taxpayer will report Income and Additional Tax for Failure to Maintain HDHP Coverage. Form 8889 is a very simple form. Here are some of filing tips of the form 8889. Line 2 – Enter here the HSA contributions that the taxpayer made directly to an HSA (outside of your employer's payroll system). Line 9 – Enter taxpayer HSA contributions are deducted from taxpayer’s paycheck plus taxpayer’s employer contributes on behalf of taxpayers. Line 10 – Report here IRA to HAS rollover (The taxpayer can do this once in a lifetime. Line 14a: Enter here HAS distribution that taxpayers received from HAS. Line 15: Enter here qualified medical expenses paid by using HAS. Line 16: Line 14c – Line 15, taxable HAS distribution. Line 17: If the Taxpayer is under 65 and line 16 is greater than 0, then taxpayer need to pay a penalty, which is 20% of line 16. 

4. Form W-2

   Box 12 of your W-2 shows your HSA contributions made by pre-tax payroll deduction, if applicable, and by your employer (labeled “employer contributions” and marked with code "W”). Enter the amount from Box 12 on your W-2 on line 9 on Form 8889.

   If your HSA payroll deductions were taken pre-tax. they’re considered “employer contributions" and shown in Box 12 on your W-2. You cannot claim pre-tax payroll deductions as a deduction on line 13 on Form 8889.

   If you made any after-tax contributions to your HSA in 2020, enter this amount on line 2 on Form 8889. Note: After-tax contributions will not appear on your W-2. You may be able to claim a deduction for these contributions on line 13. See instructions for Form 8889 for more information.

5. Form 1040: Form 1040 is your tax return. This is a two-page form with many addenda. The contribution you mentioned in Form 8889 flow to Schedule 1 line # 12 and then sum of part II appear in  Form 1040 line # 10a.

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