Question

Interview Notes
• Peggy Walker, age 48, is a single parent raising her son, Marcus . • Marcus is a full-time student and had no income . • Peggy qualifies to file as Head of Household. • For the last five years, Peggy has had family health coverage through a High Deductible Health Plan (HDHP) from her employer . • Peggy has had an HSA for several years . • In 2017, she contributed $1,500 to her HSA . • Peggy’s grandmother helped her out and contributed $1,000 to her HSA in 2017 . • Peggy’s employer also contributed $600 to her HSA in 2017 . • Peggy paid the following expenses in 2017 using money from her HSA: – Urgent care bill for Peggy - $615 – Prescription medicine for Peggy - $200 – Insulin for Marcus - $140 – Health club fees for Peggy - $175 – Doctor visits for Marcus - $500 • Peggy and Marcus are U .S . citizens and have valid Social Security numbers .

Answer 1

	Amount Contributed in HSA Account		Amount
	Peggy	$ 1,500.00
	Peggy's Grand mother	$ 1,000.00
	Peggy's Employer	$     600.00
	Total Amount In HAS Account		$ 3,100.00
Less:	Amount Spent from HSA Account and are non taxable as per Federal Tax
	Urgent Care Bill of Peggy	$     615.00
	Precription Medineces for Peggy	$     200.00
	Inculin for Mercus	$     140.00
	Total Expenses not liable for Federal Tax		$     955.00
	Balance in "HSA" Account		$ 2,145.00
	Expenses incurred from "HSA" Account liable for Fedreal tax
	Health Club Fees	$     175.00
	Doctor Visit	$     500.00	$     675.00