topic Can I enter our insurance coverage to take advantage of the last month rule? in Get your taxes done using TurboTax

Can I enter our insurance coverage to take advantage of the last month rule?

pegshock — Sat, 01 Jun 2019 20:19:27 GMT

My spouse switched from a high deductible family insurance plan to Medicare during 2018. At that time, I switched to a high deductible self only insurance plan through the end of the year. Per TurboTax SuperUser dmertz, under the last-month rule I should contribute $4,350 (including catch-up) to my HSA. When I enter the info in TurboTax Deluxe, it calculates my allowable contribution by pro-rating the self only limit for the months I had self only coverage. How do I enter our insurance coverage to take advantage of the last month rule?

We don't have enough information yet to give you a defini...

BMcCalpin — Sat, 01 Jun 2019 20:19:28 GMT

We don't have enough information yet to give you a definitive answer. Remember that we cannot see your tax return, nor the screen you are on.

dmertz is quite correct that TurboTax will prorate the annual contribution limit, except when you have a mix of Self and Family coverage and when you have the Self-only HDHP coverage on December 1, 2018 (I assume that dmertz was not presented with the exact description of your situation).

If you have a mix of Family and Self coverage, TurboTax will take the Self limit and add to it a prorated amount for the month(s) you had Family coverage. When I enter data similar to what you have said, I get a limit greater than the Self-only limit, even with only one month of Family coverage.

Perhaps you mean that you get the Self-only limit for the months you had the Self-only policy and a prorated Family limit for the months you had Family coverage, as opposed to getting the full annual Self-only limit for all 12 months and then adding the Family prorated limit to it? You can't get the last-month rule AND additional limits for some months with Family coverage.

If this does not work for you, then please make a new post in which you indicate:

your HDHP coverage and for how many months
your spouse's HDHP coverage and for how many months
your HSA contributions (both through your employer and directly to the HSA)
your spouse's HSA contributions (both through your spouse's employer and directly to the HSA)
the amount of the excess
whether or not either of you went on Medicare and what month
whether or not (and the amount) of carryover of excess contributions from 2017 for either of you

I changed my coverage to self only in November when my hu...

pegshock — Sat, 01 Jun 2019 20:19:29 GMT

I changed my coverage to self only in November when my husband went on Medicare. You say " You can't get the last-month rule AND additional limits for some months with Family coverage." Does that include the limits for my HSA and my husband's HSA?

Jan - Nov - Spouse and I had Family HDHP
Nov - Dec - Spouse on Medicare, I switched to self only HDHP

Spouse contributed $6583 to his HSA, I contributed $4450 ($0 from employer)
No carryover of excess amounts

Attaching response from similar question from Turbotax Top Questions.