50.1K

Verified Solution

Link Copied!

Interview Notes

Luther, age $54,$ and Lexi, age $56,$ are married and file a joint return.

Lexi has family coverage through her High Deductible Health Plan $($HDHP$)$ at work. In $2023,$ Lexi contributed $$2,350$ to her Health Savings Account $($HSA$).$ Luther made contributions totaling $$3,000$ to his HSA in $2023.$

Luther's Form $1099-$SA shows a distribution from his HSA of $$3,000.$ They have receipts showing they paid:

o $$300$ for new eyeglasses for Lexi,

$$2,200$ in copays for doctor visits and tests,

o $$400$ for over the counter medication, and

o $$100$ for Personal Protective Equipment $($PPE$)$ to prevent the spread of COVID$-19$ and home COVID$-19$ tests

In April $2023,$ Luther was diagnosed by his physician with a terminal illness. In May, Luther and Lexi decided to take a vacation before his health deteriorated. They used a distribution from Luther's IRA to pay for it$.$ They received a Form $1$ showing $$15,000$ in Box $1,$ and code $1$ in Box $7.$

Lexi sold a used handbag on an online marketplace. She received a Form $1099-$K reporting the $$700$ sale. She originally $$1,000$ for the bag.

Luther and Lexi are U$.$S$.$ citizens with valid Social Security numbers.

Lexi and Luther want to maximize their HSA deduction. Combined, how much more can they contribute to their indivis HSAs before the tax filing deadline?

a$.$ $$2,400$

b$.$ $$3,400$

Answer & Explanation Solved by verified expert

See Answer