Evan participates in an HSA carrying family coverage for himself, his spouse, and two children. In...

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Accounting

Evan participates in an HSA carrying family coverage forhimself, his spouse, and two children. In 2018, Evan has $100 permonth deducted from his paycheck and contributed to the HSA. Inaddition, Evan makes a one-time contribution of $2,000 on April 15,2019 when he files his tax return. Evan also receives a 2018 Form1099-SA that reports distributions to Evan of $3,200 which Evanused for medical expenses
Compute the effect of the HSA transactions on Evan’s adjustedgross income.
These transactions______(increase/decrease) Evan's AGI by $

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Contributions to a health savings account HSA can be made by or on behalf of for example by a family member any eligible individual and are deductible by the eligible individual above the line in arriving at adjusted gross income AGI Thus eligible individuals can benefit regardless of whether they itemize deductions However the individual cannot also deduct the contributions as a medical expense and the deduction will not reduce a selfemployed persons selfemployment tax Also contributions can be made by or on behalf of an eligible individual even if the individual has no compensation or if the contributions exceed See Answer

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