1. Is Leo an eligible individual for HSA purposes even though he did not make his own contributions?
XXXa. Yes
b. No
2. What amount will Leo use to compute his HSA deduction on Form 1040, line 25?
a. $0 (Incorrect)
b. $1,500
c. $2,000
3. Employer contributions to Leo’s HSA are reported on his Form W-2, box 12, code W.
XXXa. True
b. False
4. The amount that can be contributed to an HSA depends on the following:
a. Taxpayer’s age and type of HDHP coverage
b. Date the taxpayer became eligible
c. Date taxpayer ceases to be eligible
XXXd. All of the above
5. Ed and Christine are both eligible to make catch-up contributions to their individual HSAs.
a. True
XXXb. False
(INCORRECT)
6. The amount of Judy’s HSA contribution reported on Form 8889, line 2 is $2,975.
XXXa. True
b. False
7. The amount of total distributions reported on Form 8889, line 14a is:
a. $410
b. $975
c. $1,110
XXX?d. $1,410
8. What is the amount reported on Form 8889, line 15?
a. $410
b. $685
XXX? c. $1,110
d. $1,410
9. The adjustment to income on Form 1040, line 25 for Carl’s HSA deduction is:
a. $1,800
XXX?b. $3,400
c. $4,000
d. $6,750
10. Whose qualified medical expenses can Carl include for HSA purposes?
a. Carl
b. Adriane and Robert
XXX?c. Carl, Monica, Adriane, and Robert
d. Carl, Monica, Adriane, Robert, and Michael
11. On his Form 8889, Carl can include the $250 paid for Robert’s over-the-counter eye medicine as a qualifying medical expense for HSA purposes.
a. True
XXX b. False
12. The amount of Peggy Walker’s health savings account deduction reported on Form 1040, line 25 is $1,500. 3,000 False
a. True
XXXb. False
13. How much of Peggy’s HSA distribution is taxable?
a. $0
b. $140
XXXc. $175
d. $315
14. The amount of unreimbursed qualified medical expenses reported on Form 8889, line 15 is $_____. 1300?
15. What is the amount of the additional 20% tax reported on Form 8889, line 17b?
a. $0
b. $26
XXXc. $35
d. $65