HDHP coverage for spouse says that there is a break in the coverage in 2019 and asks for a reason though myself and my family is covered for the whole 2019 with an HDHP?

praveen-ssj — Tue, 14 Jul 2020 04:07:12 GMT

Re: HDHP coverage for spouse says that there is a break in the coverage in 2019 and asks for a re...

BillM223 — Tue, 14 Jul 2020 14:23:03 GMT

Your issue is with the question that asks "What type of High Deductible Health Plan did [name] have on December 1, 2018?"

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 2018 (yes, 2018). 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 (2019).

***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 2019.

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 2018 , then enter NONE
If you had no HDHP coverage for all of 2018, then enter NONE.
If you did not have an HSA in 2018, then enter NONE.
If you had an HSA in 2018 but did not contribute to it in 2018, then enter NONE.

Only taxpayers who had their own HSA in 2018 AND who contributed to their own HSA in 2018 should answer “Family” or “Self” or “None” (which can be the right answer in some cases).

Re: HDHP coverage for spouse says that there is a break in the coverage in 2019 and asks for a re...

praveen-ssj — Tue, 14 Jul 2020 15:59:56 GMT

Thank you, Bill. The answer was quite helpful.

It would be a good idea for TurboTax to change the question and also add meaning for the answer NONE.

Re: HDHP coverage for spouse says that there is a break in the coverage in 2019 and asks for a re...

BillM223 — Tue, 14 Jul 2020 16:41:26 GMT

It has been reported. Thanks.

topic HDHP coverage for spouse says that there is a break in the coverage in 2019 and asks for a reason though myself and my family is covered for the whole 2019 with an HDHP? in Deductions & credits

HDHP coverage for spouse says that there is a break in the coverage in 2019 and asks for a reason though myself and my family is covered for the whole 2019 with an HDHP?

Re: HDHP coverage for spouse says that there is a break in the coverage in 2019 and asks for a re...

Re: HDHP coverage for spouse says that there is a break in the coverage in 2019 and asks for a re...

Re: HDHP coverage for spouse says that there is a break in the coverage in 2019 and asks for a re...