5498-SA vs 1099-SA: What’s the Difference?

When it comes to HSAs, I’ve seen a lot of people get confused between 5498-SA and 1099-SA. The numbers sound almost the same, so people think they’re interchangeable, but they’re actually very different. Both forms serve their own purpose and both are important when it comes to your taxes.

Over the years working with clients who are self-employed, freelancers, or even people just using HSAs, I’ve noticed many of them don’t know why they’re getting both forms in the mail. Some think one replaces the other, some throw one away, and then tax time turns into a mess. So let me break it down for you in simple terms.

What Is Form 5498-SA?

Form 5498-SA is basically the contribution form. It shows how much money you (or your employer, if you had one) put into your HSA during the year.

• Example: let’s say you put $3,000 into your HSA; that’s going to be shown on the 5498-SA.

One thing you need to know is that this form doesn’t get filed with your tax return. It’s more for your records. But you should still keep it because it shows proof of contributions and should match what you claimed as a deduction on your taxes.

What Is Form 1099-SA?

Form 1099-SA is the distribution form. This shows money you took out of your HSA.

• Example: you swipe your HSA card at the pharmacy and pay $500 for prescriptions. That withdrawal shows up on a 1099-SA.

This one does get reported on your tax return, because the IRS wants to know if you used the money for qualified medical expenses. If you didn’t, you could owe taxes and even penalties.

The Main Difference

The easiest way to remember this is simple:

• 5498-SA = money in
• 1099-SA = money out

They work together. One shows what you contributed, the other shows what you spent.

When Freelancers and Small Business Owners See These

If you’re self-employed or running a small business and using an HSA, you’ll probably see both forms.

• You’ll get a 5498-SA if you made contributions.
• You’ll get a 1099-SA if you spent any of that money.

Getting both in the same year is totally normal.

Common Mistakes to Avoid

Here are the mistakes I see most often:

• Thinking you only need one of these forms and tossing the other.
• Forgetting to match your HSA contributions on your taxes with the 5498-SA.
• Not keeping receipts for withdrawals, the IRS can ask for proof.

How Tabby Can Help

Most of the time, people are juggling all sorts of forms, 1099-NEC, 1099-K, and now these HSA forms. It gets messy. That’s why I always push for using software like Tabby.

With Tabby, you can:

• Track contributions and withdrawals automatically.
• Keep all your forms organized in one place.
• Have a year-end report ready so you’re not scrambling during tax season.

I built Tabby because I know how painful this is, and it makes life a lot easier.

Final Thoughts

Don’t let the similar names confuse you. 5498-SA is money in, 1099-SA is money out. If you use an HSA, you’ll likely get both. Keep them, track them, and make sure everything matches your tax return. And of course, let a tool like Tabby do the heavy lifting so you’re not scrambling last minute.

FAQs

What is the difference between 5498-SA and 1099-SA?

5498-SA shows your contributions (money in). 1099-SA shows your withdrawals (money out).

Do I need both forms to file my taxes?

If you contributed and also took money out, yes. You’ll want both for your records. The 1099-SA especially has to be reported.

When should I expect to receive these forms?

You usually get the 1099-SA in January. The 5498-SA comes later, often in May, since you can make contributions up until the April deadline.

How can Tabby help track HSA contributions and withdrawals?

Tabby links to your accounts and keeps track of all this automatically. It finds the numbers, organizes them, and makes sure you’re ready for tax season.