9. Carl’s HSA deduction amount on Form 1040, Schedule 1, line 25, is $_____.

10. The amount Carl paid for his health club membership is a qualified medical expense for HSA purposes.

 a. True

 b. False

11. What is the total amount of unqualified medical expenses paid by Carl for HSA purposes?

a. $250

b. $975

c. $1,075

d. $1,325

 

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 for a 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.