Deductions & credits

No, you shouldn’t have a penalty for 2025, but let’s double-check your 2024 situation to make sure you didn’t accidentally trigger a "Testing Period" violation. Here is how the "Last Month Rule" works and how it applies to your specific timeline.

The IRS allows a "full-year" contribution in 2024, even if you only had an HDHP for one month, provided you were eligible on December 1st (2024). However, this comes with a string attached: the Testing Period. If you use the Last Month Rule to contribute more than your prorated share, you must remain HSA-eligible (have an HDHP) through December 31st of the following year. 

Since, you had an HDHP for all of 2024.  you were eligible for every single month, you did not need the "Last Month Rule" to make a full contribution. You earned your eligibility month-by-month. As a result, because you were covered for the full year of 2024, there is no "Testing Period" for you in 2025.

Since you lost HDHP coverage in January 2025, you are simply ineligible to contribute for 2025.  Losing coverage in 2025 does not "undo" your 2024 eligibility. You were a valid participant for those 12 months, so that money stays in your HSA tax-free.

You are ineligible to make a half-year contribution because you had no HDHD coverage on the first of any month in 2025. Your prorated limit dropped to zero. If you had HDHP coverage anytime during 2025, you could have pro-rated your contribution for the months you had coverage. For an example, if you had HDHP for six months, you could have contributed 1/2 of the yearly contribution limit for a HSA account ($4330 Self or $8550 for family).

Now to answer your original question, it sounds like your spouse was not on the plan since you were enrolled in the "self only" plan. If this is the case, you will need to delete her Form 8889-S from the list of forms if it is listed.

TurboTax Online

1. Sign in to your account and open your return.
2. On the left-side menu, select Tax Tools, then click Tools.
3. In the pop-up window, select Delete a form.
4. Find Form 8889-S (the "S" is for Spouse) in the list.
5. Click Delete next to it and confirm.
6. If you see a 1099-SA (Spouse) or HSA Wks (Spouse), delete those too
7. log out and back in again to save the change.

TurboTax Desktop (Windows/Mac)

1. Open your return and look at the top right corner. Click the Forms icon to switch to Forms Mode. I
2. In the left pane, look for Form 8889-S.
3. Click on the form to open it in the main window.
4. At the bottom of the screen (Windows) or under the Forms menu at the top (Mac), select Delete Form.

Confirm the deletion and then click Step-by-Step (top right) to return to the interview. Go back to the Deductions & Credits section for HSAs.

Start the interview from scratch. Only enter your information. When it asks if your spouse had an HSA or HDHP coverage, select No or None immediately to prevent the second form from being recreated. If you get that screen that you sent above, it means you selected yes and that is why the screen is being displayed as shown.