topic Why does it say there was a break in my health coverage when there wasn't? in Get your taxes done using TurboTax

Why does it say there was a break in my health coverage when there wasn't?

booklover1988 — Mon, 23 Feb 2026 10:06:26 GMT

It is asking why my health plan coverage lapsed in 2022, but as far as I know, it didn't lapse. I just used it a couple of weeks ago.

Re: Why does it say there was a break in my health coverage when there wasn't?

BillM223 — Thu, 26 Jan 2023 23:22:02 GMT

Your issue is with the question in the HSA interview that asks "What type of High Deductible Health Plan did [name] have on December 1, 2021?"

Unfortunately, the question does not clarify that it is only for a small group of taxpayers and that all other taxpayers should answer "NONE".

NOTE: each spouse can have an HSA. The use of "you" below refers to whichever spouse's name was in the question above.

This question is trying to determine if you utilized the "last-month" rule in 2021 (yes, 2021). The last-month rule lets you use the full annual HSA contribution limit if you had HDHP coverage on December 1, even if you were not covered by an HDHP for all of the year.

However, the catch is that if you used the last-month rule, the IRS requires that you stay under HDHP coverage for all of the following year (2022).

***NOTE*** This question occurs on the taxpayer who does not have an HSA, so never had a chance to tell TurboTax in the HSA interview what their HDHP coverage was for 2022.

So, the fix is this: go back to the question (at the end of the HSA interview), and:

If you had HDHP coverage for all of 2021, then enter NONE
If you had no HDHP coverage for all of 2021, then enter NONE.
If you did not have an HSA in 2021, then enter NONE.
If you had an HSA in 2021 but did not contribute to it in 2021, then enter NONE.

Only taxpayers who had their own HSA in 2021 AND who contributed to their own HSA in 2021 should answer “Family” or “Self” or “None” (which can be the right answer in some cases).

Re: Why does it say there was a break in my health coverage when there wasn't?

SJD22 — Thu, 16 Mar 2023 14:03:43 GMT

I was the owner of the HSA for our family coverage HDHP. Turbotax is saying both my husband and I I had a break in coverage for 2022. The answer below says the question occurs for the taxpayer who does not have an HSA but it is occurring for me. Neither of us had a break in coverage.

Separately but perhaps related, it also says both my husband and I made excess contributions to the HSA when he has not made any contribution. I did make an excess contribution and have withdrawn it. ON that same page of TT, after I type in what I had withdrawn, the summary chart shows zero for my husband's excess contribution and amount withdrawn (which is correct). It makes no sense but the bottom line seems correct on that front but the statement that my husband made an excess contribution when he does not have an HSA nor made a contribution worries me.

Thanks!

Re: Why does it say there was a break in my health coverage when there wasn't?

BillM223 — Thu, 16 Mar 2023 18:34:18 GMT

I can't imagine how you have gotten into the situation of both of you having lapsed coverage (according to TurboTax, that is).

Let's do this - let's delete all your HSA information and start over with it.

***HSA Reset***

1. make a copy of your W-2(s) (if you don't have the paper copies)

2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen)

*** Desktop***

3. go to View (at the top), choose Forms, and select the desired form. Note the Delete Form button at the bottom of the screen.

*** Online ***

3. go to Tax Tools (on the left), and navigate to Tools->Delete a form

4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)

5. go back and re-add your W-2(s), preferably adding them manually

6. go back and redo the entire HSA interview.

@SJD22