Miki, who is single and 57 years old, has a qualifying high-deductible insurance plan.She had the following transactions with her HSA during the year: $\begin{array}{llcc}
\text { Contributions to her HSA } &\$3,500 \
\text { Interest income earned on her HSA } &9\
\text { Medical expenses paid from her HSA } &5,739\
\text { HSA distribution to pay for her daughter's wedding } &7,650\
\end{array}$

a.How much may Miki claim as a deduction for adjusted gross income?
b.What is the amount that Miki must report on her federal income 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 qualifying high-deductible insurance plan.She had the following transactions with her HSA during the year:​ $\begin{array}{llcc}
  \text { Contributions to her HSA  } &\$3,500  \
 \text { Interest income earned on her  HSA } &9\
 \text { Medical expenses paid from her HSA } &5,739\
 \text { HSA distribution to pay for her daughter's wedding  } &7,650\
\end{array}$
 
a.How much may Miki claim as a deduction for adjusted gross income?
b.What is the amount that Miki must report on her federal income 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 qualifying high-deductible insurance plan.She had the following transactions with her HSA during the year:​ $\begin{array}{llcc}
  \text { Contributions to her HSA  } &\$3,500  \
 \text { Interest income earned on her  HSA } &9\
 \text { Medical expenses paid from her HSA } &5,739\
 \text { HSA distribution to pay for her daughter's wedding  } &7,650\
\end{array}$
 
a.How much may Miki claim as a deduction for adjusted gross income?
b.What is the amount that Miki must report on her federal income 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 Qualifying