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Interview Notes Luther and Lexi are married and file a joint return. Luther was enrolled in employer-sponsored family coverage through a high deductible health plan

Interview Notes
  • Luther and Lexi are married and file a joint return.
  • Luther was enrolled in employer-sponsored family coverage through a high deductible health plan (HDHP) for all of 2020. His monthly premiums are $300.
  • In 2020, Luther contributed $1,700 to his Health Savings Account (HSA). Of that amount, $1,200 was made pretax through his employers cafeteria plan and he made the remaining $500 contribution by electronic deposit into the HSA from his checking account. His employer sent Form W-2 reporting $1,200 in Box 12a, with code W.
  • Luther received a Form 1099-SA showing a distribution from his HSA of $230. Luther did not have any medical expenses for the year. Lexi paid $80 to the dentist for a filling, and $150 for lab work ordered during her physical.
  • Luther and Lexi felt fortunate to have good jobs when so many people in their community were out of work, so they donated $250 by check to their local food bank. The food bank is a qualified organization and provided Luther and Lexi with a written acknowledgment of their donation. They contributed $20 in cash to a fundraiser for a local childs cancer treatments. They also donated clothing in good condition with fair market value of $100 to Goodwill. They have a receipt for the donation.
  • Luther and Lexi are U.S. citizens with valid Social Security numbers. They do not have enough expenses to itemize their deductions.
6. What amount can Luther take as an HSA deduction? $________. (Do not enter dollar signs, commas, periods, or decimal points in your answer.)

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