You have seen the question: "What type of High Deductible Health Plan did [name] have on December 1, 2022?" TurboTax is looking to see if your spouse used the "last-month rule" in 2022. The "last-month rule" allows you to use the maximum HSA contribution limit if you had HDHP coverage on December 1st of the tax year. But it requires that you maintain HDHP coverage for the next year (or else, the lapse).
When you answered Self or Family for your wife, you got the message that there was a lapse in HDHP coverage, when in most cases, there wasn't.
Rather than explain the "last-month rule" and its vagaries, just do this:
- If your spouse had HDHP coverage for every month in 2022, answer "None" when asked the question above.
- If your spouse did not have an HSA at all in 2022 (i.e., it was yours), then answer "None".
- If your spouse had an HSA in 2022 but never contributed to it in 2022, then answer "None".
Answering "Self" or "Family" just confuses TurboTax (for reasons I don't want to explain), so answering "None" in the cases above will get you the outcome that you want, and let you continue in the interview.
This seems counterintuitive, but it's better than explaining the "last-month rule" and asking if it applies to your spouse.
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