Question

Evan participates in an HSA carrying family coverage for himself, his spouse, and two children. In 2018, Evan has $100 per month deducted from his paycheck and contributed to the HSA. In addition, Evan makes a one-time contribution of $2,000 on April 15, 2019 when he files his tax return. Evan also receives a 2018 Form 1099-SA that reports distributions to Evan of $3,200 which Evan used for medical expenses. Compute the effect of the HSA transactions on Evan’s adjusted gross income.

Answer 1

Answer -

Step - (1) - Information Given -

Evan participates in an HSA carrying family coverage for himself, his spouse, and two children.

In 2018, Evan has $100 per month deducted from his paycheck and contributed to the HSA.

In addition, Evan makes a one-time contribution of $2000 on April 15, 2019 when he files his tax return.

.

Step - (2) - The effect of the HSA transactions on Evan’s adjusted gross income -

These HSA transactions Decreases Evan's Adjusted gross income by $3200 [($100*12) + $2000].