Let's clarify your situation.
Line 8f on Schedule 1 (1040) is the sum of HSA distributions that were NOT for eligible medical expenses (line 16 (8889)) plus any taxes due from failure to maintain HDHP coverage (line 20 (8889)).
Did you receive a 1099-SA for taking distributions from your HSA? If so, when you entered it, did you indicate that the whole amount was for qualified medical expenses? NOTE: Whether or not the distribution is taxed is totally independent of your HDHP coverage.
Can you see your form 8889? Is there anything on line 20? If so, you may be taxed for failure to maintain HDHP coverage (i.e., you used the last-month rule in 2024 to increase your contribution limit, but did not keep HDHP coverage for the entire subsequent year, as required.
In short, I don't believe that what you are seeing is the result of any HDHP coverage not being saved.
So, please answer the following:
1. Did you have a form 1099-SA?
If so, was the entire distribution for qualified medical expenses?
2. How did you answer the question, "What type of High Deductible Health Plan (HDHP) coverage did [name] have on December 1, 2024?"
Did you answer either Self or Family?
And if so, may I confirm that you did not have HDHP in every month of 2025?
To repeat, what kind of health insurance did you have on December 1, 2024? Something other than HDHP?
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