Q1. William Bell is single and 33 years old. William works as a sales manager and his Form W-2 shows wages of $37,500. William participated in his employers self-only coverage High Deductible Health Plan (HDHP) all year. William does not have any other health coverage. William has had an HSA for two years. Williams employer contributed $1,300 in 2015 to William's HSA. In 2015, Williams mother contributed $1,000 to William's HSA. William is a U.S. citizen and has a valid Social Security number.

Is William an eligible individual for HSA purposes even though he did not make contributions?

Q2. William Bell is single and 33 years old.

William works as a sales manager and his Form W-2 shows wages of $37,500.

William participated in his employers self-only coverage High Deductible Health Plan (HDHP) all year.

William does not have any other health coverage.

William has had an HSA for two years.

Williams employer contributed $1,300 in 2015 to William's HSA.

In 2015, Williams mother contributed $1,000 to William's HSA.

William is a U.S. citizen and has a valid Social Security number.

Where on Form 1040 would William report his HSA deduction?

	A. Payments section

	B. Income section

	C. Adjusted Gross Income section

	D. None of the above

Q3. William Bell is single and 33 years old.

William works as a sales manager and his Form W-2 shows wages of $37,500.

William participated in his employers self-only coverage High Deductible Health Plan (HDHP) all year.

William does not have any other health coverage.

William has had an HSA for two years.

Williams employer contributed $1,300 in 2015 to William's HSA.

In 2015, Williams mother contributed $1,000 to William's HSA.

William is a U.S. citizen and has a valid Social Security number.

William's employer contributions to his HSA are reported on his Form W-2, box 12, code W.

True or False.

Q4.

Sam and Carol are married and will file a joint return.

Sam is 54 years old, and Carol is 57 years old.

Both were enrolled in self-only coverage High Deductible Health Plans (HDHPs) through their employers for the entire year of 2015.

Sam and Carol each have an HSA.

Both have contributed the maximum amounts to their HSAs in 2015.

Sam and Carol are both U.S. citizens and have valid Social Security numbers.

The amount that can be contributed to an HSA depends on the following:

A. Taxpayer's age and type of HDHP coverage

B. Date the taxpayer became eligible

C. Date taxpayer ceases to be eligible

D. All of the above

Q5.

Sam and Carol are married and will file a joint return.

Sam is 54 years old, and Carol is 57 years old.

Both were enrolled in self-only coverage High Deductible Health Plans (HDHPs) through their employers for the entire year of 2015.

Sam and Carol each have an HSA.

Both have contributed the maximum amounts to their HSAs in 2015.

Sam and Carol are both U.S. citizens and have valid Social Security numbers.

Because Carol is age 55 or older, she is eligible to increase her HSA contribution by $ ______.

Q6. Valerie Spring is 63 years old.

Valerie is single, is not disabled, and has no dependents.

In 2015, she had earnings from her job of $22,300.

Valerie has participated in her employer's self-only HDHP coverage since May 1, 2015 when she started a new job.

Valerie asked the HSA trustee from her previous job to transfer the balance of $2,300 into the HSA at her new job.

In 2015, Valerie contributed $750 to her HSA.

In 2015, Valerie took funds from her HSA to pay the following expenses:

Contact lenses (needed for medical reasons)$380

Medication for a skin condition (prescription from a doctor)$215

Dental visit$500

Health club fees$400

Valerie is a U.S. citizen, has a valid Social Security number, and is not eligible to be claimed as a dependent.

The amount of Valerie's HSA contribution reported on Form 8889, line 2 is $750.

True or False.

Q7

Valerie Spring is 63 years old.

Valerie is single, is not disabled, and has no dependents.

In 2015, she had earnings from her job of $22,300.

Valerie has participated in her employer's self-only HDHP coverage since May 1, 2015 when she started a new job.

Valerie asked the HSA trustee from her previous job to transfer the balance of $2,300 into the HSA at her new job.

In 2015, Valerie contributed $750 to her HSA.

In 2015, Valerie took funds from her HSA to pay the following expenses:

Contact lenses (needed for medical reasons)$380

Medication for a skin condition (prescription from a doctor)$215

Dental visit$500

Health club fees$400

Valerie is a U.S. citizen, has a valid Social Security number, and is not eligible to be claimed as a dependent.

The amount of total distributions reported on Form 8889, line 14a is:

A. $0

B. $750

C. $1095

D. $1495

Q8. Valerie Spring is 63 years old.

Valerie is single, is not disabled, and has no dependents.

In 2015, she had earnings from her job of $22,300.

Valerie has participated in her employer's self-only HDHP coverage since May 1, 2015 when she started a new job.

Valerie asked the HSA trustee from her previous job to transfer the balance of $2,300 into the HSA at her new job.

In 2015, Valerie contributed $750 to her HSA.

In 2015, Valerie took funds from her HSA to pay the following expenses:

Contact lenses (needed for medical reasons)$380

Medication for a skin condition (prescription from a doctor)$215

Dental visit$500

Health club fees$400

Valerie is a U.S. citizen, has a valid Social Security number, and is not eligible to be claimed as a dependent.

What is the amount reported on Form 8889, line 15?

A. $615

B. $900

C. $1095

D. $1495

Q9.

Carlos, age 45, and Julie, age 41, are married and will file a joint return.

They have two children, Andrea and Roberto, whom they will claim as dependents on their joint return.

Julie's cousin, Sergio (age 32), came to live with them in August 2015. Sergio's gross income was $4,200. Julie and Carlos did not provide over one-half of Sergio's support for the year but did pay $700 of Sergio's medical bills in October 2015.

Carlos was enrolled all year in an HDHP with family coverage.

Carlos has had an HSA for five years. He has no other health insurance.

In 2015, Carlos made regular contributions to his HSA totaling $3,200.

In 2015, Carlos took $1,600 from his HSA to pay the following medical expenses:

$200 for over-the-counter allergy medicine for their daughter, Andrea (no prescription from doctor)

$475 for Roberto's physical therapy sessions.

$300 to purchase Julie's eyeglasses (needed for medical reasons)

$625 for long-term care insurance for Carlos

Carlos, Julie, Andrea, Roberto, and cousin Sergio are all U.S. citizens and have valid Social Security numbers.

Carlos' HSA deduction amount on Form 1040, line 25, is $_____ ?

Q10 Carlos, age 45, and Julie, age 41, are married and will file a joint return.

They have two children, Andrea and Roberto, whom they will claim as dependents on their joint return.

Julie's cousin, Sergio (age 32), came to live with them in August 2015. Sergio's gross income was $4,200. Julie and Carlos did not provide over one-half of Sergio's support for the year but did pay $700 of Sergio's medical bills in October 2015.

Carlos was enrolled all year in an HDHP with family coverage.

Carlos has had an HSA for five years. He has no other health insurance.

In 2015, Carlos made regular contributions to his HSA totaling $3,200.

In 2015, Carlos took $1,600 from his HSA to pay the following medical expenses:

$200 for over-the-counter allergy medicine for their daughter, Andrea (no prescription from doctor)

$475 for Roberto's physical therapy sessions.

$300 to purchase Julie's eyeglasses (needed for medical reasons)

$625 for long-term care insurance for Carlos

Carlos, Julie, Andrea, Roberto, and cousin Sergio are all U.S. citizens and have valid Social Security numbers.

The amount Carlos paid for Julie's eyeglasses is a qualified medical expense for HSA purposes.

True or False ?

Q11

Carlos, age 45, and Julie, age 41, are married and will file a joint return.

They have two children, Andrea and Roberto, whom they will claim as dependents on their joint return.

Julie's cousin, Sergio (age 32), came to live with them in August 2015. Sergio's gross income was $4,200. Julie and Carlos did not provide over one-half of Sergio's support for the year but did pay $700 of Sergio's medical bills in October 2015.

Carlos was enrolled all year in an HDHP with family coverage.

Carlos has had an HSA for five years. He has no other health insurance.

In 2015, Carlos made regular contributions to his HSA totaling $3,200.

In 2015, Carlos took $1,600 from his HSA to pay the following medical expenses:

$200 for over-the-counter allergy medicine for their daughter, Andrea (no prescription from doctor)

$475 for Roberto's physical therapy sessions.

$300 to purchase Julie's eyeglasses (needed for medical reasons)

$625 for long-term care insurance for Carlos

Carlos, Julie, Andrea, Roberto, and cousin Sergio are all U.S. citizens and have valid Social Security numbers.

On his Form 8889, Carlos can include the $200 paid for Andrea's over-the-counter allergy medicine as a qualifying medical expense for HSA purposes.

True or False ?

Q12. Yvette Kohen, age 45, is a single parent raising her son, Gabriel. Yvette qualifies to file as Head of Household. For the last four years, Yvette has had family health coverage through a High Deductible Health Plan (HDHP) from her employer. Yvette has had an HSA for several years. In 2015, she contributed $1,500 to her HSA. Yvettes uncle helped her out and contributed $3,500 to her HSA in 2015. Yvettes employer also contributed $800 to her HSA in 2015. Yvette paid the following expenses in 2015 using money from her HSA: $625 for outpatient knee surgery for Yvette $275 for prescription medicine for Yvette $400 for emergency room visit for Gabriel $150 for electric toothbrushes and toothpaste for the family

The amount of Yvette Kohen's health savings account deduction reported on Form 1040, line 25 is $5,000

True or False ?

Q13. Yvette's total income includes a taxable HSA distribution of:

A $0

B $150

C $425

D $550

Q14. The amount of unreimbursed qualified medical expenses reported on Form 8889, line 15 is $____ ?

Q15 What is the amount of additional tax reported on Form 8889, line 17b?

A $0

B $30

C $55

D $85