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• Leo Williams is single and 45 years old • Leo works as an IT manager and his Form W-2 shows wages of $47,250 • Leo participated in his employer’s self-only coverage High Deductible Health Plan (HDHP) all year • Leo does not have any other health coverage • Leo has had an HSA for two years • Leo’s employer contributed $1,500 in 2017 to Leo’s HSA • In 2017, Leo’s Aunt contributed $2,000 to Leo’s HSA • Leo is a U S citizen and has a valid Social Security number 1. For Leo to be an eligible individual and qualify for an HSA, which of the following must be true? a He cannot be claimed as a dependent on someone else’s return b He must have an HDHP and cannot be enrolled in Medicare c He cannot have any other health coverage d All of the above 2. Where on Form 1040 would Leo report his HSA deduction? a Payments section b Income section c Adjusted Gross Income section d None of the above 3. Employer contributions to an HSA are reported on an employee’s Form W-2 a True b False Solution 1) he can not be claimed as a dependent on someone else\'s return . 2) income section 3) True.

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Herb and Alice are married and file a joint return. Herb is 74 years old. Alice turned 70 on February 3, 2020. Neither are blind. Herb is a retired school teacher, but continues to work part-time as a substitute teacher. Alice is retired. Herb earned $15,000 in wages. They also receive pension and Social Security income and sold some stock. Their combined AGI is $45,000. Both Herb and Alice are U.S. citizens and have valid Social Security numbers. 1. Herb and Alice cannot make contributions to their traditional IRAs because they are both over 70 1/2 Herb and Alice are married and file a joint return. Herb is 74 years old. Alice turned 70 on February 3, 2020. Neither are blind. Herb is a retired school teacher, but continues to work part-time as a substitute teacher. Alice is retired. Herb earned $15,000 in wages. They also receive pension and Social Security income and sold some stock. Their combined AGI is $45,000. Both Herb and Alice are U.S. citizens and have valid Social Security numbers. 2. Alice must take her first required minimum distribution (RMD) by April 1, and her second RMD by December 31, of what year________? Herb and Alice are married and file a joint return. Herb is 74 years old. Alice turned 70 on February 3, 2020. Neither are blind. Herb is a retired school teacher, but continues to work part-time as a substitute teacher. Alice is retired. Herb earned $15,000 in wages. They also receive pension and Social Security income and sold some stock. Their combined AGI is $45,000. Both Herb and Alice are U.S. citizens and have valid Social Security numbers. 3. Herb and Alice’s standard deduction is: A. $24,800 B. $26,100 C. $27,400 D. $28,100 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 .

Herb and Alice are married and file a joint return. Herb is 74 years.docx

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Interview Notes Luther and Lexi are married and file a joint return. Luther and Lexi were enrolled in their Marketplace second lowest cost silver (SLCSP) high deductible health plan (HDHP) with family coverage for all of 2022.Their annual enrollment premium was $7,000. They did not receive the benefit of an Advance Premium Tax Credit (APTC). Lexi and Luther's modified adjusted gross income (MAGI) for 2022 is $70,000. This is more than 400% of the Federal Poverty Line (FPL) for the contiguous 48 states, where they live. In 2022, Lexi contributed $2,300 to her Health Savings Account (HSA). Of that amount, $1,300 was made pretax through her employers cafeteria plan. She received Form W-2 from her employer reporting this amount in Box 12a, with code W. She made the remaining $1,000 contribution by electronic deposit into the HSA from her checking account. Luther did not contribute to his HSA in 2022. Luther's Form 1099-SA shows a distribution from his HSA of $500. They have receipts showing they paid $200 for new eyeglasses for Luther, $250 for over the counter allergy medicine for Luther, and $100 for Lexi's doctor visit copays. Luther and Lexi donated $450 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 $50 in cash to a local family in need. They also donated clothing in good condition with fair market value of $200 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. 7. Of Luther's Form 1099-SA amount, $50 is taxable because Luther cant use money from his HSA to pay for Lexis medical expenses. True or False? Interview Notes Luther and Lexi are married and file a joint return. Luther and Lexi were enrolled in their Marketplace second lowest cost silver (SLCSP) high deductible health plan (HDHP) with family coverage for all of 2022.Their annual enrollment premium was $7,000. They did not receive the benefit of an Advance Premium Tax Credit (APTC). Lexi and Luther's modified adjusted gross income (MAGI) for 2022 is $70,000. This is more than 400% of the Federal Poverty Line (FPL) for the contiguous 48 states, where they live. In 2022, Lexi contributed $2,300 to her Health Savings Account (HSA). Of that amount, $1,300 was made pretax through her employers cafeteria plan. She received Form W-2 from her employer reporting this amount in Box 12a, with code W. She made the remaining $1,000 contribution by electronic deposit into the HSA from her checking account. Luther did not contribute to his HSA in 2022. Luther's Form 1099-SA shows a distribution from his HSA of $500. They have receipts showing they paid $200 for new eyeglasses for Luther, $250 for over the counter allergy medicine for Luther, and $100 for Lexi's doctor visit copays. Luther and Lexi donated $450 by check to their local food bank. T.

Interview Notes Luther and Lexi are married and file a joint.pdf

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Which of the following is NOT a social objoctive of the tax law A. prohibition of a deduction for illegal bribes, fines and penalties B, a deduction for charitable contributions C. an exclusion for interest eamed by large businesses D. creation of tax-favored pension plans QUESTION 5 Which of the following individuals is least likely to be audited A. Lola has AGI of $35,000 trom wages and uses the standard deduction B. Jerry is a school teacher with 2 children earning $55,000 a year. He also receives $200 in interest income on a bank statement C. Melvin is retred and receives only Social Security benefits D. Marvella has a $145,000 not loss from her unincorporated business (a horse farm) She also received $950,000 salary as a CEO of a corporation QUESTION 6 Alan files his 2017 tax return on April 1, 2018 shortly belore the April 17th due date. His roturn contains no misstaternents or omissions of income. The statute of limitations for changes to the return expires A. April 1. 2022 B. April 17, 2021 C. The statute of limitations never expires D.April 17, 2022.

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Herb and Alice are married and file a joint return. Herb is 74 years.docx

Interview Notes Luther and Lexi are married and file a joint.pdf

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