A major HSA benefit for domestic partners is the ability to contribute up to the annual family max in separate accounts. This is possible if neither of you is a tax dependent of the other partner. Since domestic partners are not married, they are viewed as separate tax entities. This means you can both contribute up to the family maximum to your own HSAs if both of your are covered in a family health plan, even if it is the same family health plan. That means both of you could contribute up to $7,200 for the 2021 tax year. However, you are not allowed to pay for your partner's eligible medical expenses with your HSA.
If one partner is a tax dependent of the other partner, and both are covered by a family health plan, only the partner carrying the coverage can open an HSA and only that HSA can be funded. Both partners could contribute to the annual max, currently $7,200, and the account holder could pay for the partner's eligible medical expenses with it, but the other partner could not contribute to his or her separate HSA.
you check you had family coverage all year. the last month rule (LMR) is if you had family coverage on 12/1/2021 you are deemed to have family coverage all year allowing the $7200 contribution
since you used the LMR to make the max contribution, you remain an eligible individual during the testing period as follows:
Testig period. If contributions were made to your HSA based on you being an eligible individual for the entire year under the last-month rule, you must remain an eligible individual during the testing period. For the
last-month rule, the testing period begins with the last month of your tax year and ends on the last day of the
12th month following that month (for example, December 1, 2021, through December 31, 2022).
If you fail to remain an eligible individual during the testing period, for reasons other than death or becoming disabled, you will have to include in income the total contributions made to your HSA that wouldn’t have been made your income in the year in which you fail to be an eligible individual. This amount is also subject to a 10% additional tax. The income and additional tax are calculated on Form 8889, Part III.
except for the last-month rule. You include this amount in
