Question

Evan participates in an HSA carrying family coverage for himself, his spouse, and two children. In 2018, Evan has $100 per month deducted from his paycheck and contributed to the HSA. In addition, Evan makes a one-time contribution of $2,000 on April 15, 2019 when he files his tax return. Evan also receives a 2018 Form 1099-SA that reports distributions to Evan of $3,200 which Evan used for medical expenses. Compute the effect of the HSA transactions on Evan’s adjusted gross income.

Answer 1

The effect of the HSA transactions on Evan’s adjusted gross income is that the HSA transaction will DECREASED his Adjusted Income by the amount of $3,200

Step-by-step explanation:

Based on the information given we were told that Evan has the amount of $100 per month

which is been deducted from his paycheck in which the amount that was deducted ($100) is contributed to the HSA, Hence the effect of the HSA transactions on Evan’s adjusted gross income is that the HSA transaction will DECREASED his Adjusted Income by the amount of $3,200 which is calculated as :

Adjusted gross income = [($100*12) + $2,000]

Adjusted gross income=$1,200+$2,000

Adjusted gross income=$3,200