Yes, since you were covered in 2021, you may make an additional out-of-pocket contribution to maximize your 2021 deduction even though you do not have an HDHP for 2022. The last-month rule only applies if you did not have coverage for the entirety of this year but were planning to in future years, kind of the opposite of your situation. If you were covered all 12 months in 2021 with self-only coverage and over the age of 55, your maximum contribution would be $4,600. TurboTax can calculate this for you in the HSA section of your return:
- In the Federal section of your tax return, go to Deductions & Credits and scroll down to Medical and click Revisit/Start next to HSA, MSA Contributions.
- If you made any withdrawals from your HSA, you should receive a 1099-SA and answer Yes to Did you use your HSA to pay for anything in 2021? Otherwise select No.
- Assuming you did not inherit this HSA, select No.
- Under Let's enter your HSA contributions your employer amount should already be in there from the W-2. You can enter out-of-pocket contributions in the Any contributions you personally made field.
- Answer the questions on the next two screens, then make sure you answer the question related to your HDHP correctly on the next screen.
- On the Were you covered by a HDHP in 2021? Even if you had self only coverage the entire year, select I had different plan types at different times of the year and Continue.
- Select self only coverage for every month and select Calculate Max Contribution Limit. This should come up as $4,600. Press Continue.
If you would like to make an additional contribution for tax year 2021, you can enter it in the Any contributions you personally made field. The $4,600 limit applies to the sum of employer and personal contributions. Any additional contributions you make will reduce your taxable income in 2021.
