Reference no: EM132468120
Problem - Carl, age 46, and Monica, age 42, are married and will file a joint return.
They have two children, Adriane and Robert, whom they will claim as dependents on their joint return.
Monica's cousin, Michael (age 29), came to live with them in July 2019. Michael pays more than half of his support and does not qualify as their dependent, but they paid $500 of Michael's medical bills in November 2019.
Carl was enrolled all year in an HDHP with family coverage.
Carl has had an HSA for four years. He has no other health insurance.
In 2019, Carl made regular contributions to his HSA totaling $4,000.
In 2019, Carl took $1,800 from his HSA to pay the following expenses:
- $300 to purchase Monica's eyeglasses (needed for medical reasons).
- $725 health club membership 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.
Q1. Carl's HSA deduction amount on Form 1040 is $4,000.
a. True
b. False
Q2. The amount Carl paid for his health club membership is a qualified medical expense for HSA purposes.
a. True
b. False
Q3. What is the total amount of unqualified medical expenses paid by Carl for HAS purposes?
a. $250
b. $975
c. $1,075
d. $1,325