Luther and Lexi are married and file a joint return.

Luther and Lexi were enrolled in their Marketplace second lowest cost silver $($SLCSP$)$ high

deductible health plan $($HDHP$)$ with family coverage for all of $2022.$Their annual enrollment

premium was $$7,000.$ They did not receive the benefit of an Advance Premium Tax Credit $($APTC$).$

Lexi and Luther's modified adjusted gross income $($MAGI$)$ for $2022$ is $$70,000.$ This is more than

$400\%$ of the Federal Poverty Line $($FPL$)$ for the contiguous $48$ states, where they live.

In $2022,$ Lexi contributed $$2,300$ to her Health Savings Account $($HSA$).$ Of that amount, $$1,300$ was

made pretax through her employer$$s cafeteria plan. She received Form W$-2$ from her employer

reporting this amount in Box $12$a$,$ with code W$.$ She made the remaining $$1,000$ contribution by

electronic deposit into the HSA from her checking account. Luther did not contribute to his HSA in

$2022.$

Luther's Form $1099-$SA shows a distribution from his HSA of $$500.$ They have receipts showing

they paid $$200$ for new eyeglasses for Luther, $$250$ for over the counter allergy medicine for Luther,

and $$100$ for Lexi's doctor visit copays.

Luther and Lexi donated $$450$ 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 $$50$ in cash to a local family in need. They also donated clothing in good condition with

fair market value of $$200$ 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 Lexi take as an HSA deduction?

a$.$ $$0$

b$.$ $$1,000$

c$.$ $$1,300$

d$.$ $$2,300$