12. Jim and Cherie are at the top of the 22% tax bracket and have a state tax rate of 7% and payroll taxes of 7.65%. They spend $5,000 out-of-pocket for healthcare for their son. Jim and Cherie are covered by a qualified high deductible health insurance plan. Would Jim and Cherie be better off financially contributing $5,000 to a Health Savings Account, or claiming an itemized deduction on their income tax return?

a. Use a health savings account

b. Claim an itemized deduction

c. Use a health savings account and claim an itemized deduction

d. Neither option is better than the other