HS HSA Scenario 4 Carl and Monica Smith Cart age 46, and Monica, age 42, are mar
ID: 2607921 • Letter: H
Question
HS HSA Scenario 4 Carl and Monica Smith Cart age 46, and Monica, age 42, are married and will file a . They have two children, Adriane and Robert, whom they will Ret claim as dependentson Monica's cousin, Michael (age 29), came to live with them in gross income was $4,300. Monica and Carl did not Michaol's support for the year but did pay $600 orn-half f November 2017 $600 of Michael's medical bills in in an HDHP with family coverage. Carl was enrolled all year Cari has had an HSA for four years. He has no other health insurance In 2017, Carl made regular contributions to his HSA totaling $4,000 · In2017, Carl took $1.800 form his HSA to pay the following medical expenses - $300 to purchase Monica's eyeglasses (needed for medical reasons) - $725 for long-term care insurance for Carl. - $250 for over-the-counter eye medicine for their son, Robert (no prescription from doctor). $525 for Adriane's physical therapy sessions. Carl, Monica, Adriane, Robert, and cousin Michael are all U.S. citizens and have valid Social Security numbers. HSA Scenario 4: Retest Questions 9. Carl's HSA deduction amount on Form 1040, line 25, is $ 10. The amount Carl paid for long-term care insurance is a qualified medical expense for HSA purposes. a. True b. False 11 What is he total amount of unqualified medical expenses paid by Cart for HSA purposes? a. $250 b. $1,025 c. $1,550 d. $2,150Explanation / Answer
9. $4000 (maximum deduction amount HSA family coverage is $6000 but the amount of contribution for HSA by Carl is $4000, so deduction amount will be $4000)
10. True (long term care insurance is qualified medical expense for HSA)
11. Answer is option A $250 (over the counter eye medicine for son for which there is no prescription from doctor cannot be considered as qualified medical expense for HSA)
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