Form 8853, also known as the Archer MSAs and Long-Term Care Insurance Contracts, is a tax form used by individuals to report distributions from Archer Medical Savings Accounts (MSAs) and to claim the deduction for long-term care insurance contracts.
Here are the key points relevant for understanding who should complete Form 8853:
1. Archer MSAs: If you had distributions from an Archer MSA, whether through deposits, interest, or withdrawals, you may need to complete Form 8853. Archer MSAs are accounts that individuals can contribute to if they have a high-deductible health plan and are not enrolled in Medicare.
2. Long-Term Care Insurance Contracts: Individuals who have long-term care insurance contracts and wish to claim a deduction for the premiums paid may have to complete Form 8853. It allows taxpayers to deduct a portion of the premiums paid for qualified long-term care insurance contracts, subject to certain limitations.
3. Age and Medical Eligibility: To be eligible for the deduction for long-term care insurance contracts, you generally must be at least 40 years old and the contract must be considered a qualified long-term care insurance contract. Qualification is based on criteria defined in the tax code.
4. Reporting Distributions and Deductions: On Form 8853, you will report the distributions from Archer MSAs and calculate any taxable amount. Additionally, you will report the amount of premiums paid for long-term care insurance contracts and calculate the allowable deduction.
5. Submitting with Tax Return: Form 8853 is typically submitted along with your annual income tax return (e.g., Form 1040). Be sure to attach it and follow the instructions provided to ensure proper filing.
6. Consult a Tax Professional: Determining if you need to complete Form 8853 can depend on your individual circumstances and tax situation. If you have any doubts or questions, it is advisable to consult a tax professional or review the instructions provided by the IRS (Internal Revenue Service).
It is important to note that this content is intended as a general guideline and is not a substitute for professional tax advice. Taxpayers should always consult the latest IRS publications and seek assistance from tax professionals to ensure compliance with tax laws.