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 2017. Michael's gross income was $4,300. Monica and Carl did not provide over one-half of Michael's support for the year but did pay $600 of Michael's medical bills in November 2017.

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 2017, Carl made regular contributions to his HSA totaling $4,000.

In 2017, 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 long-term care insurance for Carl.

$250 for over-the-counter eye medicine for their son, Robert (no prescription from doctor).

$525 for Adriane's physical therapy sessions.

9. The adjustment to income on Form 1040, 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. Adriane and Robert

	C. Carl, Monica, Adriane, and Robert

	D. Carl, Monica, Adriane, Robert, and Michael

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.

True

False