My health plan is HDHP before and after enrolling HSA. Do I select Self Plan or None for Jan/Feb/March/April of 2024? What value should I enter for income to include?

[reneerex]

I'm single. The health plan my employer offered is HDHP. I enrolled in HSA in 2024/4. I contributed for 2024($4150) and 2025 ($4300). I selected Self plan for 2024 all months. It says "We calculated $xxx for income to include under the last-month rule, but you told us a different amount. Remove your entry below to use our calculation, or leave your total if you have a situation that requires uncommon adjustments." I tried removed the amount or not removed it, clicked "Continue". It asked me to provide type of coverage spouse. I did not select, only clicked "Continue". It says that I have an excess contribution of $4300. What should I do next? Thanks.

[BillM223]

To answer your direct question, you enter NONE for your HDHP coverage for Jan through April for 2024. However, please note that because of the last-month rule, you are allowed to use the full annual HDHP coverage amount for 2024 because you had HDHP coverage on December 1, 2024.

Once you took advantage of the last-month rule, you were required to keep HDHP coverage for all twelve months of the following year (i.e., 2025).

What was your HDHP coverage (or rather, for which months) in 2025? Excess contribution of $4,300 suggests that you did not indicate any HDHP coverage in 2025. No coverage in 2025 would have triggered the last-month rule processing; however, your statement that you contributed $4,300 in 2025 suggests that you thought that you had HDHP in 2025, but the last-month rule processing suggests that you did not enter it.

[reneerex]

Hello BillM223, 

Thanks for your reply. Yes, I did keep HDHP coverage for all twelve months of year 2025. I selected "Self" for the year 2025 coverage. Then, the system asked me to update the coverage of year 2024. I selected "Self" for all twelve months of year 2024. Is that correct? Or should I select "NONE" for Jan through April for 2024 and "Self" for rest of months of year 2024? 

I tried to double check my selection. Where can I find the HSA contribution and healthcare coverage? Thanks.

Best regards,

Lei

[BillM223]

I may have misunderstood what you meant by "My health plan is HDHP before and after enrolling HSA. Do I select Self Plan or None for Jan/Feb/March/April of 2024? "

Are you saying that you had HDHP coverage for all 24 months of 2024 and 2025, but that you did not create and fund your HSA until April of 2024? (Is that what "2024/4" meant?) If so, then you check "Self" for all 24 months. 

Two issues:

A. First, you stated that TurboTax told you that you had excess contributions of $4,300 for 2025. You said that you had contributed $4,300 to your HSA in 2025, so this means that ALL of your contributions were in excess. The easiest way for this to happen is that you did not show any HDHP coverage for 2025. But you say that you did show coverage.

Are you using TurboTax Online or TurboTax Desktop?

Online

Please look at your 1040 - see How do I preview my TurboTax Online return before filing?

Now, please find any entries on lines 8f on Schedule 1 (1040) and 17c and 17d on Schedule 2 (1040), and tell me the amounts there.

Desktop

Go into Forms mode (upper right) and find form 8889. Please tell me the amounts on lines 2, 3, 9, 18, 20, and 21.

These values will help me to know what your return is doing, since what I see so far is confusing.

[reneerex]

Hello BillM223,

Thanks for your reply. Yes, I had HDHP coverage for all 24 months of 2024 and 2025, but that you did not create and fund your HSA until April of 2024. Thanks. I will check "Self" for all 24 months. I use TurboTax Online. But currently, I don't find the place to double check it. Thanks. 

Best regards,

Lei