Miki,who is single and 57 years old,has a quaifying high-deductible insurance plan.She had the following transactions with her HSA during the year: $\begin{array}{lr}
\text { Contributions to her HSA } & \$ 3,250 \
\text { Interest income earned on her HSA } & \$ 9 \
\text { Medical expenses paid from her HSA } & \$ 5,739 \
\text { HSA distribution to pay for her daughter's wedding } & \$ 7,650
\end{array}$
a.How much may Miki claim as a deduction for adjusted gross income?
b.What is the amount that Miki must report on her tax return as income from her HSA?
c.How much is subject to a penalty? What is the penalty percentage?

Question

Miki,who is single and 57 years old,has a quaifying high-deductible insurance plan.She had the following transactions with her HSA during the year: $\begin{array}{lr}
\text { Contributions to her HSA } & \$ 3,250 \
\text { Interest income earned on her HSA } & \$ 9 \
\text { Medical expenses paid from her HSA } & \$ 5,739 \
\text { HSA distribution to pay for her daughter's wedding } & \$ 7,650
\end{array}$ 
a.How much may Miki claim as a deduction for adjusted gross income?
b.What is the amount that Miki must report on her tax return as income from her HSA?
c.How much is subject to a penalty? What is the penalty percentage?

Quizplus · Accepted Answer

The Answer of Miki,who is single and 57 years old,has a quaifying high-deductible insurance plan.She had the following transactions with her HSA during the year: $\begin{array}{lr}
\text { Contributions to her HSA } & \$ 3,250 \
\text { Interest income earned on her HSA } & \$ 9 \
\text { Medical expenses paid from her HSA } & \$ 5,739 \
\text { HSA distribution to pay for her daughter's wedding } & \$ 7,650
\end{array}$ 
a.How much may Miki claim as a deduction for adjusted gross income?
b.What is the amount that Miki must report on her tax return as income from her HSA?
c.How much is subject to a penalty? What is the penalty percentage?

Miki,who Is Single and 57 Years Old,has a Quaifying High-Deductible