Luther, age 5 4 , and Lexi, age 5 6 , are married and file a joint
Question:
Luther, age and Lexi, age are married and file a joint return.
Lexi has family coverage through her High Deductible Health Plan HDHP at work. In Lexi
contributed $ to her Health Savings Account HSA Luther made contributions totaling $ to his HSA in
Luther's Form SA shows a distribution from his HSA of $ They have receipts showing they paid:
o $ for new eyeglasses for Lexi,
o $ in copays for doctor visits and tests,
o $ for over the counter medication, and
o $ for Personal Protective Equipment PPE to prevent the spread of COVID and home COVID tests
In April Luther was diagnosed by his physician with a terminal illness. In May, Luther and Lexi decided to take a luxury vacation before his health deteriorated. They used a distribution from Luther's IRA to pay for it They received a Form R showing $ in Box and code in Box
Lexi sold a used handbag on an online marketplace. She received a Form K reporting the $ sale. She originally paid $ for the bag.
Luther and Lexi are US citizens with valid Social Security numbers.
How much of Luthers Form SA amount is taxable?
a $ because they had qualified medical expenses of $
b $ because PPE is not a qualified expense for
c $ because Luther cant use money from his HSA to pay for Lexis medical expenses
d $ because over the counter medicine is not a qualified medical expense
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill