BillM223
Expert Alumni

Deductions & credits

As I noted above, because you did not have an HSA, you did not go through the part of the HSA interview where you indicated your HDHP coverage for 2022. 

 

TurboTax has to ask everyone if they had HDHP coverage in 2021, because if they had, they may have used the Last Month Rule. So, if you answered Family or Self to the HDHP coverage in 2021, TurboTax assumed that your coverage had "lapsed" since you didn't appear to have any HDHP coverage in 2022.

 

Several years ago, the screen would just ask you if you had used the Last Month Rule in the previous year. Not surprisingly, no taxpayers (and few tax professionals) knew what the Last Month Rule was, so every taxpayer came to the Community to ask what it meant.

 

What you see now is the rewrite of the screen to try to accommodate this situation. Hopefully, they will find a better way to ask taxpayers about this. This will be difficult, because taxpayers - who don't really understand how the HSA works - start by assuming that TurboTax is in error in asking about the year 2021, and it goes downhill from there.

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