1099-sa & 5498-sa

[TAX]

Client, sole prop, received 5498-SA and 1099-SA for 2006.

(1) 5498-SA: Box 2 = Total contribution made = $2,000
Box 5 = Fair market value of HSA... = $14,862
Box 6 marked as HSA

(2) 1099-SA Box 1 = Gross Distribution = $502.55
Box 3 = Distribution code = 1
Box 5 marked as HSA

Can some tell me how should I report it on 2006 return?

I use proseries

Thanks!

[KJ Judd]

The $2,000 contributions are a deduction on page one of Form 1040 up to the deductible amount. On Form 8889, the contributions of $2000 go on line 2.

The distributions of $502.55 go on line 12a. You'll need to inquire if all distributions were for qualified medical expenses.

The instructions for Form 8889 should help.