Taxpayers who contribute to or withdraw from an HSA during the year must:
A. attach a written note to their tax return.
B. file a Form 8889 and attach it to their Form 1040.
C. do nothing.
D. report it on Schedule A.
is it B
http://en.wikipedia.org/wiki/Health_savings_account
Read carefully.
its C
Right.
It's already been earned by you and placed into a specialized savings account. Why should you be taxed twice on that money?
Yes, the correct answer is B. Taxpayers who contribute to or withdraw from a Health Savings Account (HSA) during the year are required to file a Form 8889 and attach it to their Form 1040 when they file their tax return.
To arrive at this answer, you could refer to the instructions provided by the Internal Revenue Service (IRS) regarding HSAs. The IRS instructions clearly state that taxpayers should use Form 8889 to report contributions to and withdrawals from an HSA. Form 8889 is then attached to the taxpayer's Form 1040 when filing their federal income tax return. By reviewing and following the specific instructions from the IRS, you can determine that the correct answer is B.