I have an HDHP & HSA. The HDHP covers our whole family, including my wife. If I answer that my wife is covered by my HDHP, Turbo says there was a lapse in her coverage.

[philip-barkes]

This question comes up after entering the 1099-SA information. The only way to avoid this is two answer "none" for whether she was covered under any HDHP.

[BillM223]

In all likelihood, one of you (your spouse in this case) does not have an HSA, so this person never went through the HSA interview to tell TurboTax that this person had HDHP coverage, so TurboTax got confused and thought that maybe this person's coverage "lapsed". Sound familiar? If so, see the bulleted list.

• If you or your spouse [whoever is NAME above] did not have an HSA in 2023, then answer NONE.
• If you or your spouse had an HSA but did not contribute to an HSA in 2023, then answer NONE. (Remember that each of you can have an HSA).
• If you or your spouse was covered by an HDHP policy for each month of 2023, then answer NONE.

That is, answer NONE to the question "What type of High Deductible Health Plan did [name] have on December 1, 2023", because the question doesn't apply to [NAME].

Remember that each of you can have an HSA, so there are two subsections of the HSA interview, one for each HSA owner. Unfortunately, it is not obvious to you that while you answered the HDHP questions for you in the HSA interview, you never answered any HDHP questions for your spouse in the HSA interview, so TurboTax thought (wrongly) that your spouse did not have HDHP coverage for 2024, but when you answered that question for your spouse's coverage in December, 2023, then TurboTax thought that your spouse's coverage for 2023 had lapsed for 2024. So just answer NONE.

Yes, this question could be handled better.

[DTSimmons]

I am having this same problem.  I went back and entered that I have an HSA but put "None" for my wife, but it continues to ask me why her coverage lapsed in 2024.

[DTSimmons]

I was able to resolve this, but only by going back and saying she had an HSA and filling it out with zero, then going back and changing the answer to "None."

[BillM223]

The solutions is much simpler. For the spouse that had no HSA in the previous year or made no contributions to an HSA in the previous year, enter NONE.

IF HOWEVER, a spouse did not have HDHP coverage for the full year in 2024, but that spouse did have an HSA in the previous year and contributed to it, then this is exactly the person for whom the question was intended. Answer Self or Family and then answer the questions that follow.

In this last case, TurboTax is trying to determine how much the spouse would have been able to contribute had it not been for the use of the "last-month" rule.