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Deductions & credits
"Do you still recommend choosing "Family" from Jan to May 2022? " - No, that was my mistake - I thought you said that you had HDHP coverage in the first part of the year. Thank you for catching that.
NONE is what you enter if (1) you had no HDHP coverage, or (2) you had HDHP coverage with conflicting coverage (like Medicare or another non-HDHP policy, or (3) you were not eligible to contribute to an HSA because you could be claimed as a dependent. This means that you have the choice of valid Self or valid Family or everything else, which is called NONE.
#2. No, you are exactly the sort of person who must answer the question about December 1, 2022, because you might have used the last-month rule. The last-month rule means that if you have HDHP coverage on December 2022 (or what the previous year was), your annual HSA contribution limit is whatever the maximum is, as if you had HDHP coverage for every month of the year. But, the catch is that you have to keep the HDHP coverage for the next twelve months.
The "lapse" is that you did not maintain HDHP coverage into 2023. Now you have to answer a lot of questions about what you did in 2022 so that TurboTax can figure out if you owe a penalty for contributing in 2022 more than what your month by month contribution limit would have allowed.
So, yes, you may end up with "additional income under the last-month rule".
#3. An HSA is owned by an individual just like an IRA. Note that it may seem like you have a joint HSA because both of you can contribute to yours and both of you can pay expenses out of yours, but the fact is, that the HSA belongs to you and you alone.
In reference to why I said this above, if your spouse does not have an HSA, then when you are asked what type of HDHP your spouse had on December 1, 2022, just answer NONE - for your spouse only. You have to answer "Family" and go through all those questions.
When you are 55+, it may pay for your spouse to have a separate HSA from yours.
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