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a .Trueb .False5 .Because Christine is age 55 or older, she is eligible to increase her HSA contribution by $_______ .
Health Savings Accounts (HSA)143HSA Scenario 3: Judy YoungInterview Notes• Judy Young is 58 years old .• Judy is single, is not disabled, and has no dependents .• In 2018, she had earnings from her job of $24,300 .• Judy has participated in her employer’s self-only HDHP coverage since June 1, 2018 when she started a new job .• Judy was an eligible individual all year .• Judy asked the HSA trustee from her previous job to rollover the balance of $2,000 into the HSA at her new job .• In 2018, Judy contributed $975 to her HSA .• In 2018, Judy took funds from her HSA to pay the following expenses:–Insulin $275–Doctor visit $185–Yoga classes $480–Prescription medicine $225–Premiums for COBRA coverage $1,425• Judy is a U .S . citizen and has a valid Social Security number .HSA Scenario 3: Retest Questions6 .Judy will report her HSA contribution on Form 8889, line 2 .7 .Judy will receive Form 1099-SA that reports her HSA distribution .8 .Which of the following expenses will not be included on Judy’s Form 8889, line 15?
Health Savings Accounts (HSA)144HSA Scenario 4: Carl and Monica SmithInterview Notes• Carl, age 46, and Monica, age 42, are married and will file a joint return.• They have two children, Adriane and Robert, whom they will claim as dependents on their joint return .• Monica’s cousin, Michael (age 29), came to live with them in July 2018 . Michael does not qualify as their dependent, but they paid $500 of Michael’s medical bills in November 2018 .• Carl was enrolled all year in an HDHP with family coverage .• Carl has had an HSA for four years . He has no other health insurance .• In 2018, Carl made regular contributions to his HSA totaling $4,000 .• In 2018, Carl took $1,800 from his HSA to pay the following medical expenses:–$300 to purchase Monica’s eyeglasses (needed for medical reasons) .–$725 for a health club membership for Carl .–$250 for over-the-counter eye medicine for their son, Robert (no prescription from doctor) .–$525 for Adriane’s physical therapy sessions .• Carl, Monica, Adriane, Robert, and cousin Michael are all U .S . citizens and have valid Social Security numbers .HSA Scenario 4: Retest Questions9 .Carl’s HSA deduction amount on Form 1040, Schedule 1, line 25, is $_____ .10 .The amount Carl paid for his health club membership is a qualified medical expense for HSA purposes .a .Trueb .False