Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

please answer 7, 8. thank you! nario 3: Interview Notes . . . Janice Billings, age 40, and Andrew Noble, age 45 are engaged and

image text in transcribed
image text in transcribed
please answer 7, 8. thank you!
nario 3: Interview Notes . . . Janice Billings, age 40, and Andrew Noble, age 45 are engaged and lived together the entire year. Janice moved her mother Dorothy in with them on December 1, 2019, due to Dorothy's Alzheimer's diagnosis. Janice received Medicaid waiver payments of $15,000 for the care of her mother. The payments were reported on Form W-2. Dorothy's only income was Social Security in the amount of $13,000, which she used for her own support. Andrew earned wages of $25,000 and was enrolled the entire year in a high deduct- ible health plan (HDHP) with self-only coverage. . During the year, Andrew contributed $1,500 to his Health Savings Account (HSA). Andrew's mother also contributed $1,000 to his HSA account Andrew's Form W-2 shows $500 in Box 12 with code W. He has Form 5498-SA showing $3,000 in Box 2. Andrew took a distribution from his HSA to pay his unreimbursed expenses: Urgent care bill: $375 Hospital bill: $1,200 Prescription medicine: $578 Dental bills for routine exams: $168 Over-the-counter allergy medication: $79 Yoga Classes: $600 Janice, Andrew, and Dorothy are U.S. citizens with valid Social Security numbers. 7. The HSA contribution made by Andrew's employer will be shown in Box 12 on his Form W-2 with the following: a. Code D b. Code DD C. Code J d. Code W 8. The over-the-counter allergy medication is a qualified medical expense for HSA purposes a. True b. False

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information For Business Decisions

Authors: Billie Cunningham, Loren A. Nikolai, John Bazley, Marie Kavanagh, Geoff Slaughter, Sharelle Simmons

2nd Edition

0170253708, 978-0170253703

Students also viewed these Accounting questions

Question

Explain the triple constraint. Why is it so important?

Answered: 1 week ago