Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Health Savings Accounts (HSA)

Summary and Exercises

Practice Exercises

Use the taxpayer documents and interview notes to complete this practice exercise. Complete Form 1040 and the appropriate forms and schedules, to answer the questions.

For practice using the tax preparation software, complete this scenario using the Practice Lab on Link & Learn Taxes.

Andrew Noble Scenario 2

Taxpayer Documents

Click here to see Andrew's Form 13614-C.

Click here to see Andrew's Form 5498-SA.

Click here to see Andrew's Form W-2.

Interview Notes:

  • Andrew was not on Medicare at any time during the year.
  • Andrew was enrolled the entire year in an HDHP with self-only coverage.
  • During this year, Andrew contributed $3,500 to his HSA.
  • Andrew took a distribution from his HSA to pay the following unreimbursed expenses:

  • Urgent care bill $375
    Hospital bill $1,200
    Prescription medicine $578
    Dental bills for routine exams $168
    Nonprescription medication $79

Question 1

What is the amount of Andrew's HSA deduction?

A.
B.
C.
D.

Question 2

Did Andrew make an excess contribution to his HSA?

A.
B.

Question 3

Is the urgent care bill a qualified medical expense for HSA purposes?

A.
B.

Question 4

What is the total unreimbursed qualified medical expenses reported on Form 8889, Part II?

A.
B.
C.
D.