Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tax drill - health savings accounts indicate whet

Tax Drill - Health Savings Accounts Indicate whether the following statements are "True" or...

80.2K

Verified Solution

Question

Accounting

Tax Drill - Health Savings Accounts
Indicate whether the following statements are "True" or "False" regarding Health Savings Accounts and the medical deduction.
a. To qualify as a high-deductible plan, the annual deductible in 2023
is not less than $1,500 for self-only coverage for family
coverage).
b. Earnings on HSAs are not subject to taxation unless distributed, in
which case taxability depends on the way the funds are used.
c. The annual deduction for contributions to an HSA is limited to an
amount that depends on whether the taxpayer has self-only
coverage or family coverage.
d. Contributions made by the taxpayer to an HSA are deductible from
AGI to arrive at taxable income.
e. For a high-deductible plan, the annual limit in 2023 on total out-of-
pocket costs (excluding premiums) under the plan can not exceed
$7,500 for self-only coverage ( $15,000 for family coverage).
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students