Interview Notes • Luther and Lexi are married and file a joint retun. • Luther was enrolled in employer-sponsored family coverage through a high deductible health plan (HDHP) for all of 2020. His monthly premiums are $300. . In 2020, Luther contributed $1,700 to his Health Savings Account (HSA). Of that amount, $1,200 was made pretax through his employer's cafeteria plan and he made the remaining $500 contribution by electronic deposit into the HSA from his checking account. His employer sent Form W-2 reporting $1,200 in Box 12a, with code W. • Luther received a Form 1099-SA showing a distribution from his HSA of $230. Luther did not have any medical expenses for the year. Lexi paid $80 to the dentist for a filling, and $150 for lab work ordered during her physical. Luther and Lexi felt fortunate to have good jobs when so many people in their community were out of work, so they donated $250 by check to their local food bank. The food bank is a qualified organization and provided Luther and Lexi with a written acknowledgment of their donation. They contributed $20 in cash to a fundraiser for a local child's cancer treatments. They also donated clothing in good condition with fair market value of $100 to Goodwill. They have a receipt for • Luther and Lexi are U.S. citizens with valid Social Security numbers. They do not have enough expenses to itemize their deductions. donation. 6. What amount can Luther take as an HSA deduction? OA. SO OB. $500 OC. $1,200 OD. $1,700
Interview Notes • Luther and Lexi are married and file a joint retun. • Luther was enrolled in employer-sponsored family coverage through a high deductible health plan (HDHP) for all of 2020. His monthly premiums are $300. . In 2020, Luther contributed $1,700 to his Health Savings Account (HSA). Of that amount, $1,200 was made pretax through his employer's cafeteria plan and he made the remaining $500 contribution by electronic deposit into the HSA from his checking account. His employer sent Form W-2 reporting $1,200 in Box 12a, with code W. • Luther received a Form 1099-SA showing a distribution from his HSA of $230. Luther did not have any medical expenses for the year. Lexi paid $80 to the dentist for a filling, and $150 for lab work ordered during her physical. Luther and Lexi felt fortunate to have good jobs when so many people in their community were out of work, so they donated $250 by check to their local food bank. The food bank is a qualified organization and provided Luther and Lexi with a written acknowledgment of their donation. They contributed $20 in cash to a fundraiser for a local child's cancer treatments. They also donated clothing in good condition with fair market value of $100 to Goodwill. They have a receipt for • Luther and Lexi are U.S. citizens with valid Social Security numbers. They do not have enough expenses to itemize their deductions. donation. 6. What amount can Luther take as an HSA deduction? OA. SO OB. $500 OC. $1,200 OD. $1,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Interview Notes
• Luther and Lexi are married and file a joint return.
Luther was enrolled in employer-sponsored family coverage through a high deductible health plan (HDHP) for all of
2020. His monthly premiums are $300.
• In 2020, Luther contributed $1,700 to his Health Savings Account (HSA). Of that amount, $1,200 was made pretax
through his employer's cafeteria plan and he made the remaining $500 contribution by electronic deposit into the HSA
from his checking account. His employer sent Form W-2 reporting $1,200 in Box 12a, with code W.
• Luther received a Form 1099-SA showing a distribution from his HSA of $230. Luther did not have any medical
expenses for the year. Lexi paid $80 to the dentist for a filling, and $150 for lab work ordered during her physical.
• Luther and Lexi felt fortunate to have good jobs when so many people in their community were out of work, so they
donated $250 by check to their local food bank. The food bank is a qualified organization and provided Luther and
Lexi with a written acknowledgment of their donation. They contributed $20 in cash to a fundraiser for a local child's
cancer treatments. They also donated clothing in good condition with fair market value of $100 to Goodwill. They
have a receipt for the donation.
• Luther and Lexi are U.S. citizens with valid Social Security numbers. They do not have enough expenses to itemize
their deductions.
6. What amount can Luther take as an HSA deduction?
OA. SO
OB. $500
OC. $1,200
OD. $1,700
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education