Turbotax Erroneously applying HSA last month rule

Forum|Forum|4 months ago
February 21, 2026
1 reply
32 views

My wife had an HSA compliant health insurance plan for ALL of 2024 and contributed the max HSA contribution for that year. Starting in July of 2025 she no longer had the HSA compliant plan. When filling out the HSA questions in Turbotax it says I need to add additional income under the last month rule.

It appears that Turbotax is applying the last month rule when it should not.

TurboTax Deluxe Online

Mike9241

Level 15

TurboTax makes it absolutely hair-pulling. The 2024 data is only needed if you use the last-month rule (LMR) to make a full year's contribution when you would otherwise be ineligible. Since she had compliant insurance for every month in 2024 she did not use the rule. Nowhere does TurboTax clearly explain that if the LMR is not used in the prior year, the prior year's data should be left blank. Deleting the 2024 data should solve your issue.

Mike9241