Question: Interview Notes Leo Williams is single and 45 years old. Leo works as an IT manager and his Form W-2 shows wages of $47,250. Leo

Interview Notes
  • Leo Williams is single and 45 years old.
  • Leo works as an IT manager and his Form W-2 shows wages of $47,250.
  • Leo participated in his employers self-only coverage High Deductible Health Plan (HDHP) all year.
  • Leo does not have any other health coverage.
  • Leo has had an HSA for two years.
  • Leos employer contributed $1,500 in 2017 to Leo's HSA.
  • In 2017, Leos Aunt contributed $2,000 to Leo's HSA.
  • Leo is a U.S. citizen and has a valid Social Security number.
2. What amount will Leo use to compute his HSA deduction on Form 1040, line 25?
A. $0
B. $1,500
C. $2,000
D. $3,500

  • Judy Young is 58 years old.
  • Judy is single, is not disabled, and has no dependents.
  • In 2017, she had earnings from her job of $24,300.
  • Judy has participated in her employer's self-only HDHP coverage since June 1, 2017 when she started a new job.
  • Judy was an eligible individual all year.
  • Judy asked the HSA trustee from her previous job to transfer the balance of $2,000 into the HSA at her new job.
  • In 2017, Judy contributed $975 to her HSA.
  • In 2017, Judy took funds from her HSA to pay the following expenses:
    • Insulin $275
    • Doctor visit $185
    • Yoga classes $300
    • Prescription medicine $225
    • Premiums for COBRA coverage $425
  • Judy is a U.S. citizen and has a valid Social Security number.
7. The amount of total distributions reported on Form 8889, line 14a is:
A. $410
B. $975
C. $1,110
D. $1,410

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