Form 1099-SA - Distribution From a Medicare Advantage MSA

Medicare Part C (Medicare Advantage Plans) is another way to get your Medicare benefits. It combines Part A, Part B, and sometimes Part D (prescription drug) coverage. Medicare Advantage Plans are managed by private insurance companies approved by Medicare. These plans must cover medically-necessary services.

Medicare C is reported on Form 1099-SA Distributions from a HSA, Archer MSA, or Medicare Advantage MSA. The amount included in income is the amount not used to pay medical expenses. Generally, if you receive a taxable distribution, you must also pay an additional tax on the amount included in income. The additional tax for Medicare Advantage MSAs is 50%.

To enter or review information from Form 1099-SA:

  1. From within your TaxAct® return (Online or Desktop) click Federal. On smaller devices, click in the upper left-hand corner, then select Federal.
  2. Click Other Income in the Federal Quick Q&A Topics menu to expand the category and then click MSA Distributions (Form 1099-SA).
  3. Click +Add Form 1099-SA to create a new copy of the form or click Review to review a form already created 
  4. The program will proceed with the interview questions for you to enter or review the appropriate information

Additional Information

From Who can get Medicare?:

Medicare Part C (Medicare Advantage plans)

If you receive your Part A and Part B benefits directly from the government, you have original Medicare. If you receive your benefits from a Medicare Advantage organization or other company approved by Medicare, you have a Medicare Advantage plan. Many of these plans provide extra coverage and may lower your out-of-pocket costs.

If you have Medicare Parts A and B, you can join a Medicare Advantage plan. With these plans, you can’t have a Medigap policy, because Medicare Advantage plans cover many of the same benefits a Medigap policy covers. This includes benefits like extra days in the hospital after you’ve used days that Medicare covers.

Medicare Advantage plans include:

  • Medicare managed care plans;
  • Medicare preferred provider organization (PPO) plans;
  • Medicare private fee-for-service plans; and
  • Medicare specialty plans.

If you decide to join a Medicare Advantage plan, you use the health card that you get from your Medicare Advantage plan provider for your health care. Also, you might have to pay a monthly premium for your Medicare Advantage plan because of the extra benefits it offers.