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IRS Form 8853

Purposes and Terms

In the United States, there are various tax documents, return reports, and accounting records. Such an approach provides the authorities with ultimate control over taxation, preferential payments, and financial transactions of entrepreneurs. Besides, there are several official documents of the Internal Revenue Service for individuals in various areas.

For instance, today, each taxpayer, depending on the purpose, may fill out a tax form regarding contributions to a medical savings account and long-term insurance contracts. These agreements have some common features, advantages, and disadvantages. Below, you will find the basic information about the application form under registered number 8853.

Initially, you need to understand the relevant terminology. A medical savings account is a tax-free bank account created to help public users recover their medicine costs. This term implies several similar agreements that were adopted in the 1990s. However, by the early 2000s, these documents had become a federal pilot program under the Health Insurance Portability and Accountability Act.

Today, this type of savings account is publicly available, and sometimes other employer-sponsored health programs are offered to employees. An employee or employer can contribute to flexible medical spending arrangements. On the other hand, only the employer pays such financial compensation on behalf of the employee.

Thus, you may fill out this tax form if you have a medical savings account issued through your employer or a Medicare program. You also have the right to apply to the tax office if you need to report taxable payments under the insurance contract. In general, this tax document allows you to solve some questions regarding taxation and determines your obligations.

Who Can Apply?

Typically, employers and business owners, as well as employees and individuals, submit tax documents. As for this application, you may submit it under the following circumstances:

  • You or your boss have made contributions to this account;
  • You jointly with your spouse file a return on contributions;
  • Purchase of a share of this medical account due to the death of the owner;
  • Underinsurance clause.

As required by the Tax Service, you must file this form in conjunction with Income Statement 1040 if you (or your spouse in the joint application) received such an invoice and distribution in 2020.

Types of Medical Savings Accounts

In the United States, as in other countries, there are several types of medical savings agreements. Such bills appeared to make the high cost of some medical services more affordable for the population. There is the Medicare Program that combines a high-deductible insurance plan that covers this portion of medical expenses. The second way is a regular medical savings account.

Health program plans cover services that all Medicare Advantage plans must cover. Moreover, some plans may cover additional benefits for an additional fee, such as:

  • Dentistry
  • Vision
  • Hearing long
  • Term care

All this increases the efficiency of the provision of medical services and improves your overall health.

Other IRS Forms for Individuals

The forms presented here might be of help to you in various life situations. Check whether there are IRS forms you would want to learn more about.


How To Fill Out This Template

Filling out any tax documents requires care, understanding some financial nuances, and other knowledge. Approach such a process with mindfulness, and if difficulties arise, use the support of tax specialists. To be eligible for the Archer MSA, you must be an employee of a small company or self-employed. Besides, you are not dependent, and you must not have other health insurance. As a rule, such a savings account serves as a convenient tool for paying for high-cost medical services.

There are cases when an individual becomes disabled or incapacitated. In either case, this person is unable to participate in any activity due to physical or mental disorders that may even lead to death. Meanwhile, in case of the owner’s death, several extra conditions apply to the medical savings account management. If the deceased has a spouse designated as the beneficiary, the Archer MSA continues to operate. The spouse fulfills all activities related to the account. If there is no living or assigned beneficiary, the agreement is no longer valid.

Get the Relevant Form Template

The Internal Revenue Service website has sections with tax forms. Download the template for this application and carefully fill in all points.

Provide General Information

Any tax document requests information about you. Enter your first and last name, as well as your social security number. If you are applying with your spouse, write the social security number on your first tax return.

step 2 - provide general information - filling out irs form 8853

Archer Medical Savings Account

Start completing the form from the first section if you have this account through your employer. The amount that relates to the deduction from this account may be limited. Note that if you and your spouse have made contributions in addition to any employer contributions, there will be an additional tax.

Enter the total amount of the employer’s contribution to this account, as well as your donation. When entering the data, be sure to receive compensation from the W-2 form provided by your supervisor.

step 3.1 - archer medical savings account - filling out irs form 8853

The second part of this section includes information about all distributions. These distributions include any money you have transferred from a medical account to another savings account. It also consists of any money that you received as payment for medical services during the year. By the way, keep in mind that Archer-type distributions included in income are subject to an additional 20 percent tax. The only exceptions are death, disability, and the age of 65.

step 3.2 - archer medical savings account - filling out irs form 8853

Complete the Section about Medicare Advantage MSA

The second section of the tax return applies exclusively to medical savings accounts and the Medicare Advantage program. Fill out all the necessary information if you have an advantage under such a plan. All the lines in this section refer only to this program and not to other types of accounts.

Enter the total number of distributions received during the year and the total non-refundable expenses. If you are filing a joint tax return with your spouse and you both have either an Archer TSA or a Medicare Advantage MSA, fill out two separate forms.

To become a member of this program, you must be enrolled in Medicare and have an HDHP that meets the Medicare guidelines. Only Medicare may make these contributions.

step 4 - complete the section about medicare advantage msa - filling out irs form 8853

Insurance Contracts

The final stage of filling out the form is the section on insurance contracts. For a better understanding, read some of the concepts and carefully write down the information. You may also use our form-building software if necessary.

So, the policyholder is an individual who owns income under an LTC, life, or another insurance contract. Indeed, the insurer must regularly report on the profit, even if the payment is assigned to a third party.

Enter the first and last name of the insured person and the social security number. Answer the questions provided regarding the receipt of any payments under the insurance contract in the current year. There is also the question of a terminally ill person. In general, this is an individual who has supporting documents from a doctor about the presence of incurable diseases.

Next, fill in the lines, taking into account the attribution to them. Enter the total amount of the death benefit, select a specific contract period, and calculate the taxable insurance amounts.

step 5 - insurance contracts - filling out irs form 8853

After filling in all tax information, check the entered data several times and the amounts.