Question
Peggy Walker Directions Use the interview notes, taxpayer documents, and reference materials needed for this scenario . Please complete Form 1040 through line 15, and
Peggy Walker Directions
Use the interview notes, taxpayer documents, and reference materials needed for this scenario . Please complete Form 1040 through line 15, and the appropriate forms (including Form 8889), schedules, or work- sheets . Answer the questions following the scenario .
Note: When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINs), replace the Xs as directed, or with any four digits of your choice.
Interview Notes
-
Peggy Walker, age 48, is a single parent raising her son, Marcus .
-
Marcus is a full-time student and had no income .
-
Peggy qualifies to file as Head of Household.
-
Peggy does not have enough deductions to itemize .
-
For the last five years, Peggy has had family health coverage through a High Deductible Health Plan (HDHP) from her employer .
-
Peggy has had an HSA for several years .
-
In 2018, she contributed $1,500 to her HSA .
-
Peggys grandmother helped her out and contributed $1,000 to her HSA in 2018 .
-
Peggys employer also contributed $600 to her HSA in 2018 .
-
Peggy paid the following expenses in 2018 using money from her HSA:
-
Urgent care bill for Peggy - $615
-
Prescription medicine for Peggy - $125
-
Insulin for Marcus - $140
-
Dancing lessons for Peggy - $200
-
Doctor visits for Marcus - $400
-
-
Peggy and Marcus are U .S . citizens and have valid Social Security numbers .
Health Savings Accounts (HSA) 135
136 Health Savings Accounts (HSA)
Health Savings Accounts (HSA) 137
138 Health Savings Accounts (HSA)
12. The amount of Peggy Walker's HSA deduction on Form 8889, line 13 is $2,500. T/F
13. How much of Peggy's HSA distribution is taxable?
A. $0
B. $125
C. $140
D. $200
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started