Hello! Hoping that someone can help me with this- I see the chatter, but none of it addresses a specific question.
I had an HDHP in 2020. In mid-December 2020, my husband's job opened up for open enrollment and we signed up for a HDHP with his company. I terminated my HDHP policy with my company triggering the "life events" exception. If I check the "Family" box for December, it increases my taxes by 1K because it is taxing all my tax free contributions to my own HSA for when I was on my own plan. This cannot be right, so I just changed the box to "self".
Can someone explain to me if this is correct? I was covered by a HDHP all year in 2020 and in 2021, and because of how the software seems to be set up, it is unclear to me on how to reach the appropriate taxable income for this situation. I do not believe that my contributions to my HDHP in 2020 should be taxed in 2021, but perhaps I am not understanding the tax regulation clearly. Need help please.
