Get your taxes done using TurboTax

OK, you say that you have HDHP coverage but no HSA. It's unusual for a taxpayer to be under HDHP coverage to not go ahead and open an HSA and contribute to it. It's not required that you do so, but you are missing on a tax break if you don't open an HSA and use it.

Now, since you say that you don't have an HSA, this means that you did not go through the HSA interview. In the HSA interview, you indicate that you have HDHP coverage. Since you did not do that, TurboTax has to consider the possibility that you had HDHP coverage last year and used the "last-month rule" to maximize your HSA contributions but did not remain under HDHP coverage for 2021, which is required in such a case.

Unfortunately in the TurboTax interview, people see this question which often doesn't apply to them.

Now I want to reconfirm - did you or did you not go through the HSA interview (it begins asking what medical accounts you have)? If you did not go through the HSA interview, then answering NONE to the "What type of High Deductible Health Plan did you have on December 1, 2020?" question will avoid the error message about the lapse.

If you are still seeing this error message, then I have to guess that you have somehow indicated to TurboTax that you have an HSA. Please do the following:

It is possible to accidentally indicate to TurboTax that you had an HSA when perhaps you didn't. If you did not have an HSA, please do the following to remove all traces of HSA information from your return.

NOTE: if you see a question "What type of High Deductible Health Plan did you have any December 1, 2020?" (yes, 2020), be sure to answer "NONE".

1. make a copy of your W-2(s) (if you don't have the paper copies)

2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen

*** Desktop***

3. go to View (at the top), choose Forms, and select the desired form. Note the Delete Form button at the bottom of the screen.

*** Online ***

3. go to Tax Tools (on the left), and navigate to Tools->Delete a form

4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)

5. go back and re-add your W-2(s), preferably adding them manually

6. continue with your return.