Intuit Academy Tax Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

What purpose does Form 8889 serve?

To claim the Child Tax Credit

To report Health Savings Account contributions and distributions

Form 8889 is specifically designed for reporting Health Savings Account (HSA) contributions and distributions. This form allows individuals with HSAs to document their contributions made to the account throughout the tax year and any distributions taken from the account for qualified medical expenses. By filling out Form 8889, taxpayers can determine if they owe any taxes or penalties related to their HSA transactions, and it also plays a critical role in reporting these amounts on their tax returns accurately.

The purpose of Form 8889 is directly tied to the management of health savings accounts, providing a clear pathway for individuals to account for their contributions and distributions, which may qualify for tax deductions or tax-free withdrawals when used for eligible healthcare expenses. Understanding how to use this form is crucial for taxpayers who wish to take advantage of the tax benefits associated with HSAs.

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To declare bankruptcy

To apply for a home mortgage

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