HSA Error

[CP01]

Hi All,

I am getting the below screenshot error if I check Self and run the error then I get 11 errors for the same section. Please let me know how to fix this. - Thanks in advance. 

I'm using windows desktop version. I had HDHP and HAS in 2024. Didn't have HDHP in 2025 as I was laid off and didn't make any contribution to the existing HSA account, but took distribution for medical expenses. Don't have a spouse unless TT knows something I don't. 

Do you think this question has anything to do with the error? 

What type of High Deductible Health Plan did Jane have on December 1, 2024?

If Jane had HDHP coverage on December 1, 2024, but failed to be an eligible individual for other reasons, select None. - My respond to this is SELF, as I did have HDHP in Dec, 2024. 

[RogerD1]

Yes, Self would be the correct response if the HDHP coverage applied only to you.  To fix this, I'd recommend going back to the Personal section of TurboTax - follow these steps (they mention selecting Self plan for some selections because that's what you mentioned in your response, but change Self to Family in the steps below if you had a Family plan):

1. Click on Personal Income
2. Scroll down to Less Common Income, then click Update to the right of 1099-SA, HSA, MSA
3. On the "Select the health-related accounts you had in 2025", select Health Savings Account, then Continue
4. The next screen will have your "1099-SA Summary", if you already entered it.  If you used your HSA for medical expenses in 2025, you should have received a 1099-SA form detailing the amount of money used from the account.  If you did, but haven't entered that form in yet, now would be a good time to do that.  If you only used the HSA funds for medical expenses, be sure to indicate that in this section.
5. The next screen is about HSA contributions in 2025 - since you didn't maintain the HDHP health coverage, you shouldn't have made any contributions to the HSA - select Continue.
6. "Was Jane covered by a High Deductible Health Plan (HDHP) in 2025?" - select No, then Continue.
7. "Do any of these situations apply to Jane?" - select any of those that apply - then, Continue
8. "What type of High Deductible Health Plan did Jane have on December 1, 2024?" - select Self, if it was a self only plan - then Continue.
9. The next screen is going to ask for 2024 tax return information and will indicate where you can find that information on your return.  Enter any of those amounts that apply, then click Continue.
10. On the "Let's review what type of coverage Jane had in 2024", select the Self plan for those months that you were covered in 2024 - if None, select that
11. "Additional Income under the last-month rule" is uncommon, but enter any information there if it applies
12. The last screen will have Your HSA Summary -this should have also cleared the errors that you saw

[CP01]

Thanks for the detail information. Someone told me to put No Entry which worked is that not right? I'm confused now which to follow.

[RogerD1]

Since you did have an HDHP in December 2024, the correct answer there would be to select that you had Self only coverage in that month.  Having that last month eligibility in December, 2024 allows you to make a full year contribution to your HSA for 2024 even if you only were covered for part of 2024.  The kicker is that you need to maintain the HSA coverage for all of 2025 in order to be able to have made that full year contribution in 2024.  Because you didn't have an HSA in 2025, the questions you are seeing are being used to establish that the HSA contribution you made in 2024 was fully eligible as a tax deduction for 2024.  If it isn't, then there will be excess contributions to your HSA for 2024 based on not having the HDHP in 2025 and they will be subject to a 6% penalty tax on the excess contribution.

All that to say that absolutely do say that you had the HDHP in December 2024 for Self-only coverage.  If you had the HDHP coverage for all of 2024, then you won't be subject to the 6% excess contribution penalty for not having the HDHP plan in 2025.

[CP01]

I followed all the steps you suggested and getting the same error. It seems when I click None from these options no more error - 

Options – No entry, Line 18B12, None, Line 18B12, Self and Line 18B12, Family

When I go back to check the 1099-SA screen Self is listed for 2024 from Jan-Dec for me but the None appears in the spouse screen for Dec. I think there is a glitch in TT as I never seen a spouse screen before been filing single for years. See screen shot below and recommend. Thanks  

 

[CP01]

Sorry forgot to ask what's the last month rule. Please correct if my understanding is wrong - I had HDHP plan all of 2024 and HSA. As of Jan 2025 no HDHP no HSA contribution so I shouldn't have penalty right? As I thought you can't make half year contribution to HSA being I was laid off. Am I missing anything. Thanks

[DaveF1006]

No, you shouldn’t have a penalty for 2025, but let’s double-check your 2024 situation to make sure you didn’t accidentally trigger a "Testing Period" violation. Here is how the "Last Month Rule" works and how it applies to your specific timeline.

The IRS allows a "full-year" contribution in 2024, even if you only had an HDHP for one month, provided you were eligible on December 1st (2024). However, this comes with a string attached: the Testing Period. If you use the Last Month Rule to contribute more than your prorated share, you must remain HSA-eligible (have an HDHP) through December 31st of the following year. 

Since, you had an HDHP for all of 2024.  you were eligible for every single month, you did not need the "Last Month Rule" to make a full contribution. You earned your eligibility month-by-month. As a result, because you were covered for the full year of 2024, there is no "Testing Period" for you in 2025.

Since you lost HDHP coverage in January 2025, you are simply ineligible to contribute for 2025.  Losing coverage in 2025 does not "undo" your 2024 eligibility. You were a valid participant for those 12 months, so that money stays in your HSA tax-free.

You are ineligible to make a half-year contribution because you had no HDHD coverage on the first of any month in 2025. Your prorated limit dropped to zero. If you had HDHP coverage anytime during 2025, you could have pro-rated your contribution for the months you had coverage. For an example, if you had HDHP for six months, you could have contributed 1/2 of the yearly contribution limit for a HSA account ($4330 Self or $8550 for family).

Now to answer your original question, it sounds like your spouse was not on the plan since you were enrolled in the "self only" plan. If this is the case, you will need to delete her Form 8889-S from the list of forms if it is listed.

TurboTax Online

1. Sign in to your account and open your return.
2. On the left-side menu, select Tax Tools, then click Tools.
3. In the pop-up window, select Delete a form.
4. Find Form 8889-S (the "S" is for Spouse) in the list.
5. Click Delete next to it and confirm.
6. If you see a 1099-SA (Spouse) or HSA Wks (Spouse), delete those too
7. log out and back in again to save the change.

TurboTax Desktop (Windows/Mac)

1. Open your return and look at the top right corner. Click the Forms icon to switch to Forms Mode. I
2. In the left pane, look for Form 8889-S.
3. Click on the form to open it in the main window.
4. At the bottom of the screen (Windows) or under the Forms menu at the top (Mac), select Delete Form.

Confirm the deletion and then click Step-by-Step (top right) to return to the interview. Go back to the Deductions & Credits section for HSAs.

Start the interview from scratch. Only enter your information. When it asks if your spouse had an HSA or HDHP coverage, select No or None immediately to prevent the second form from being recreated. If you get that screen that you sent above, it means you selected yes and that is why the screen is being displayed as shown.

---

 

[CP01]

Thank you for responding in detail. 

I called TT on a question I had about CA health coverage and also asked about this Form 8889-S. The agent said to delete it as it's for spouse and I'm filing single doesn't apply.