Question

Interview Notes 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 2018. Michael does not qualify as their dependent, but they paid $500 of Michael's medical bills in November 2018. 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 2018, Carl made regular contributions to his HSA totaling $4,000. In 2018, Carl took $1,800 from his HSA to pay the following medical 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. 9. The adjustment to income on Form 1040, Schedule 1, line 25 for Carl's HSA deduction is: A. 1,800 B. 3,400 C. 4,000 D. 6,750 10. Whose qualified medical expenses can Carl include for HSA purposes? A. Carl B. Adriene and Robert C. Carl, Monica, Adriene, and Robert D. Carl, Monica, Adriene, Robert, and Michael 11. On his Form 8889, Carl can include the $300 to purchase Monica's eyeglasses as a qualifying medical expense for HSA purposes. T/F

Answer 1

Answer :-

9 ) :-

The answer is Option ( B ) .

Explanation :-

1. Acclimation to pay in shape 1040, line 25 for HSA conclusion is $3400.
2. One can deduct all passing HSA commitments regardless of whether he don't separate findings.
3. $600 paid for Michael hospital expenses are not met all requirements for reasoning.
   

10 ) :-

The answer is Option ( C) .

Explanation :-

1. For HSA reason, Carl can incorporate medicinal costs of his own, mate and wards.
2. Michael is excluded as his gross pay is above $4050.

11 ) :-

The answer is False .

Explanation :-

1. On frame 8889, Carl ca exclude $250 paid for Roberts over the counter eye medication as a passing cost for HSA purposes as just endorsed prescriptions or medications are qualified medicinal costs.
2. Despite the fact that couple of over the counter medications are additionally qualified yet eye drug is excluded in that.