b$.$ Explain why Box $3$ ruperts only $$168,600.$

$$168,600$ is the HCA cap or the $$ amount of mops in $2604$ siffect the $-$

C$.$ Which boxes are likely to be repoled en the taspayery form $1040?$ What do these amounta moreuent, and what line of the $1040$ or supplemental schedule are they thely to be reported en$?$

$$ : I the taxable wages and will be reported on Form $1040,q,,$ : is income tiex withiniting and will be reperted on Form $1040,,$ E is state incernet las writicald and may be reported on sichedule A if the taspayer alects to Revire deductions.

$7.$ PR$.02-07$

Problem $2-7$

Accident and Health Insurance $(1\mathrm{.}02\mathrm{.}3)$

Simer is covered by Rig company's health insurance plan. The health insurance evels his ceneany $59,500$ a year. Doring the yas, Sipler in dagnesed with a serous firess asd twath inturance pays $$150,609$ for surgery and treamant.

How much of the insurance and treatment sayments are taxable $80$ Skiler?

$$

PR $02-08$

Freblem $2-8$

Acdifient and peakn Insurance $(102\mathrm{.}3)$

Malin is a married tapperer and has three dependent children. Malin's enyloyer offers healh insuranie for employees, and Malin lases advancage of the behefin for her entire family $($her spouse's emplieyer also offers health insurahok, but they ept out$).$ Durne the yeac, Main Malin's family visited health care profescionaly numerous times during the year and made total ce$-$payments tomard medical arrices el $3280.$ Malin's daughter had knee surpery sue to a soccer infory, and the insurance compativ paid the houpital $$6,700$ directly and reimbursed Malin $$450$ for her bul$-$of$-$pocket health care expenses related to the surgery.