Homework Answers
Solution. The correct answer is option third, if HSA contributions are less than the prescribed limits, the account earnings are included in the account holder's gross income for federal income tax purposes.
Explanation: Health Savings Account(HSA) distributions used by the participant-taxpayer for the family's medical expenses are excluded from taxpayer's gross income is true, by filing with form 8889, according to Internal Revenue Service(IRS).
If any HSA distributions not used for medical expenses are subject to federal income taxes is true, with additional twenty percent in form of penalty, according to IRS.
If HSA contributions are less than the prescribed limits, the account earnings are included in the account holder's gross income for federal tax purposes holds false.
Contributions will be deductible even if individuals do not itemize holds true. According to IRS, HSA contributions are one of the few medical deductions which can be deductible without following the itemizing procedure.
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All the following statements concerning HSAs are correct, EXCEPT: HSA distributions used by the participant-taxpayer for...
All the following statements concerning HSAs are correct, EXCEPT: A. Group of answer choices HSA distributions used by t...
All the following statements concerning HSAs are correct, EXCEPT: A. Group of answer choices HSA distributions used by the participant-taxpayer for the family’s medical expenses are excluded from the taxpayer’s gross income. B. Any HSA distributions not used for medical expenses are subject to federal income taxes. C. If HSA contributions are less than the prescribed limits, the account earnings are included in the account holder’s gross income for federal income tax purposes. D. Contributions will be deductible even if...
q1 Which of the following statements is false about health savings accounts (HSAs)? a. Distributions from...
q1 Which of the following statements is false about health savings accounts (HSAs)? a. Distributions from HSAs which are used for qualifying medical expenses are not subject to tax or penalty. b. Deductible contributions to HSAs are unlimited. c. Taxpayers qualifying for Medicare do not qualify to make HSA contributions. d. Distributions from HSAs which are not used for medical expenses are generally subject to a 20 percent penalty and income taxes. e. HSAs must be paired with qualifying high-deductible...
Which of the following statements concerning Medical Savings Accounts (MSAs) and Health Savings Accounts (HSAs) is...
Which of the following statements concerning Medical Savings Accounts (MSAs) and Health Savings Accounts (HSAs) is correct? MSA and HSA contributions are permitted to be claimed as a medical expense on the taxpayer's Schedule A (Itemized Deductions). Retired taxpayers enrolled in Medicare can use HSAs to generate tax benefits for out of pocket medical costs Taxpayers who use MSAs and HSAs convert below the line deductions into above the line deductions. MSAs can be created by anyone who has a...
Which of the following is a false statement about health savings accounts (HSAs)? a.HSAs are available...
Which of the following is a false statement about health savings accounts (HSAs)? a.HSAs are available to any taxpayer using a health plan purchased through the state or federal exchange under the Affordable Care Act. b.Distributions from HSAs which are not used to pay qualifying medical expenses are generally subject to a 20 percent penalty as well as income taxes. c.Taxpayers who contribute to an HSA must carry qualifying high-deductible health insurance. d.Taxpayers must contribute to the HSA by April...
Tor F 1. For 2018, the amount of the student loan interest deduction is limited to...
Tor F 1. For 2018, the amount of the student loan interest deduction is limited to $3,500. Tor F 2. Under a divorce agreement executed in 2018, periodic payments of either cash or property must be made at regular intervals to be deductible as alimony. Tor F 3. With a Health Savings Account (HSA), contributions grow tax free and distributions used for to pay for medical expenses are non-taxable. Tor F 4 . The cost of aspirin and over-the-counter cough...
9. Which of the following statements concerning Roth IRAs is correct? a. in the event of...
9. Which of the following statements concerning Roth IRAs is correct? a. in the event of distributions from a Roth IRA, the earnings are deemed withdraw first. b. A distribution from a Roth IRA must include both earnings and contributions c. if the entire Roth IRA is distributed within 5r years to buy a car, only the earnings are subject to income tax, but the entire amount may be subject to penalty. d. if distributions are made within 5 years...
Serena is a 40-year-old single taxpayer. She operates a small business on the side as a...
Serena is a 40-year-old single taxpayer. She operates a small business on the side as a sole proprietorship. Her 2018 Schedule C reports net profits of $5,624. Her employer does not offer health insurance. Serena pays health insurance premiums of $7,545 in 2018. Serena also pays long-term care insurance premiums of $600 in 2018. Calculate Serena’s self-employed health care deduction. $____________ Evan participates in an HSA carrying family coverage for himself, his spouse, and two children. In 2018, Evan has...
Linette, a single taxpayer, had the following income and deductions for the tax year 2018 EEB...
Linette, a single taxpayer, had the following income and deductions for the tax year 2018 EEB (Click the icon to view the income and deductions.)(Click the icon to view the standard deduction amounts.) (Click the icon to view the 2018 tax rate schedule for the Single filing status.) Read the requirements Requirement a. Compute Linette's taxable income and federal tax liability for 2018 First calculate the gross income, then calculate taxable income and the federal tax lability. (Calculate the tax...
Bob, an unmarried taxpayer filing single, has no dependents and reports the following items on his...
Bob, an unmarried taxpayer filing single, has no dependents and reports the following items on his 2019 federal income tax return: BE: (Click the icon to view the items reported in 2019.) 5 (Click the icon to view the 2019 AMT exemption amounts.) Read the requirements. Requirement a. What is the amount of Bob's AMT adjustments related to itemized deductions? Complete the table below to determine Bob's total AMT adjustments related to itemized deductions. (If a box is not used...
Loriann, a single taxpayer, had the following income and deductions for the tax year 2018: ick...
Loriann, a single taxpayer, had the following income and deductions for the tax year 2018: ick he icon to view he income and deductions Click the con towe w the standard deduction amounts ick the con to view the 2018 tax rate schedule for the Single ling status Read the requirements Requirement a. Compute Loriann's taxable income and federal tax liabilty for 2018 First calculate the gross income, then calculale taxable income and the federal tax iability. (Calculate the tax...
Which of the following statements concerning Medical Savings Accounts (MSAs) and Health Savings Accounts (HSAs) is correct? MSA and HSA contributions are permitted to be claimed as a medical expense on the taxpayer's Schedule A (Itemized Deductions). Retired taxpayers enrolled in Medicare can use HSAs to generate tax benefits for out of pocket medical costs Taxpayers who use MSAs and HSAs convert below the line deductions into above the line deductions. MSAs can be created by anyone who has a...
Tor F 1. For 2018, the amount of the student loan interest deduction is limited to $3,500. Tor F 2. Under a divorce agreement executed in 2018, periodic payments of either cash or property must be made at regular intervals to be deductible as alimony. Tor F 3. With a Health Savings Account (HSA), contributions grow tax free and distributions used for to pay for medical expenses are non-taxable. Tor F 4 . The cost of aspirin and over-the-counter cough...
Linette, a single taxpayer, had the following income and deductions for the tax year 2018 EEB (Click the icon to view the income and deductions.)(Click the icon to view the standard deduction amounts.) (Click the icon to view the 2018 tax rate schedule for the Single filing status.) Read the requirements Requirement a. Compute Linette's taxable income and federal tax liability for 2018 First calculate the gross income, then calculate taxable income and the federal tax lability. (Calculate the tax...
Bob, an unmarried taxpayer filing single, has no dependents and reports the following items on his 2019 federal income tax return: BE: (Click the icon to view the items reported in 2019.) 5 (Click the icon to view the 2019 AMT exemption amounts.) Read the requirements. Requirement a. What is the amount of Bob's AMT adjustments related to itemized deductions? Complete the table below to determine Bob's total AMT adjustments related to itemized deductions. (If a box is not used...
Loriann, a single taxpayer, had the following income and deductions for the tax year 2018: ick he icon to view he income and deductions Click the con towe w the standard deduction amounts ick the con to view the 2018 tax rate schedule for the Single ling status Read the requirements Requirement a. Compute Loriann's taxable income and federal tax liabilty for 2018 First calculate the gross income, then calculale taxable income and the federal tax iability. (Calculate the tax...
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