Miki,who Is Single and 57 Years Old,has a Quaifying High-Deductible

question 11

Essay

Miki,who is single and 57 years old,has a quaifying high-deductible insurance plan.She had the following transactions with her HSA during the year: $\begin{array}{lr}\text { Contributions to her HSA } & \$ 3,250 \\\text { Interest income earned on her HSA } & \$ 9 \\\text { Medical expenses paid from her HSA } & \$ 5,739 \\\text { HSA distribution to pay for her daughter's wedding } & \$ 7,650\end{array}$
a.How much may Miki claim as a deduction for adjusted gross income?
b.What is the amount that Miki must report on her tax return as income from her HSA?
c.How much is subject to a penalty? What is the penalty percentage?

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Definitions:

Cephalocaudal Development

A pattern of growth where physical development starts from the head and moves towards the feet.

Embryo

An early stage of development in multicellular organisms, in humans, it refers to the period from fertilization until the eighth week of pregnancy.

Top Down

A processing approach where perception starts with the input of a general idea or framework before breaking down into smaller components.

Radiation

The emission of energy as electromagnetic waves or as moving subatomic particles, especially high-energy particles that cause ionization.