There is information which needs to be confirmed before proceeding.  Most of the input will be within the "Personal Information" section.  Please see the attached reference to assist you in clearing the message regarding your wife's health insurance coverage.

Health insurance loop - Community

In regards to your HSA contributions, if applicable, you will need to enter information. 

In order to do this, go to the Federal section of the program and select "Deductions & Credits".

1. Select Medical (you may have to select see all if you do not see this option)
2. Under Medical, select "HSA, MSA Contributions"
3. Follow the screens and answer the questions 
4. Enter any information from any 1099-SA forms.  
5. Confirm whether the distributions were used on medical expenses.
6. Confirm if you or your spouse were covered under a "High Deductible Health Plan" (HDHP).  If you answer no here, the program may result in a lapse of coverage warning, so please verify your answer here to avoid the error.

In the case of a Health Savings account (HSA) issue, please see the attached for assistance in determining what is an allowable contribution for 2019.  Please be aware that if both you and your spouse have HSA accounts, the maximum contribution is $7,000 for both of you combined. 

HSA Account contributions

Dear Turbo Tax, I am using the PC application (Deluxe) version and I ahve been through this section a few times and the program insists that my wife's coverage has lapsed. I have responded that I am covered by a FAMILY HDHP, and also respond the same for her, the next screen has the lapsed coverage message asking if it was because of a disability. How do I fix this?

OK, what I did was go through it yet again and this time I stated my wife also had an HSA, but contributed zero to it. this then allowed the program to ask about the HDHP and add in the extra line asking about all year, and it then came out right. Need to fix the loops in that part of your program guys.

@GrumpyOldMan 

Thanks - this fixed it for me too.

Your issue is with the question that asks "What type of High Deductible Health Plan did [name] have on December 1, 2018?"

Unfortunately, the question does not clarify that it is only for a small group of taxpayers and that all other taxpayers should answer "NONE".

NOTE: each spouse can have an HSA. The use of "you" below refers to whichever spouse's name was in the question above.

This question is trying to determine if you utilized the "last-month" rule in 2018 (yes, 2018). The last-month rule lets you use the full annual HSA contribution limit if you had HDHP coverage on December 1, even if you were not covered by an HDHP for all of the year.

However, the catch is that if you used the last-month rule, the IRS requires that you stay under HDHP coverage for all of the following year (2019).

***NOTE*** This question occurs on the taxpayer who does not have an HSA, so never had a chance to tell TurboTax in the HSA interview what their HDHP coverage was for 2019.

So, the fix is this: go back to the question (at the end of the HSA interview), and:

• If you had HDHP coverage for all of 2018 , then enter NONE 
• If you had no HDHP coverage for all of 2018, then enter NONE.
• If you did not have an HSA in 2018, then enter NONE.
• If you had an HSA in 2018 but did not contribute to it in 2018, then enter NONE.

Only taxpayers who had their own HSA in 2018 AND who contributed to their own HSA in 2018 should answer “Family” or “Self” or “None” (which can be the right answer in some cases).