Jeff (50) took a distribution of $4,800 from his health savings account (HSA) to pay for qualified medical expenses. Jeff's federal adjusted gross income (AGI)is $52,930. He is itemizing deductions on his federal return, but has no medical expense deduction because all of his medical expenses were paid with the funds from his HSA. What adjustment would you make on his California return? A, Since Jeff paid for all of his medical expenses using pretax dollars, he can not include those expenses on his tax return. B, Jeff has deductible medical expenses for his California return. Calculate the amount by first subtracting the 7.5% of his AGI. He can deduct $830 on his California return. C, Jeff can include the $4,800 of qualified medical expenses as an itemized deduction on his California return. D, Jeff cannot make any adjustment on his California return.

Answer rating: 100% (QA)

The correct answer is C Jeff can include the 4800 of ... View the full answer