Why is it asking about a lapse in HDHP for my husband(who is the policy holder) due to disability? There was no lapse

[taxbryant5]

My husband is the policy holder and experienced no disability or lapse in 2017.

[BMcCalpin]

When going through the questions, you will get to a screen entitled "What type of High Deductible Health Plan did [spouse] have on December 1st 2016?" (see screenshot below).  If your spouse was covered under your health insurance plan, then you should select "none" not "family or self-only." You are selecting none because your spouse does not have their own coverage, they are covered under your plan.  If you select one of the other options, then you will get the notification about a coverage lapse.

Note that this work only if your spouse was on your coverage, not if each of you had self-only coverage.

[taxbryant5]

It didn’t ask me about HDHP coverage for spouse, only for the policy holder. I chose family because that’s what he carries.

[BMcCalpin]

Who is the primary taxpayer, you or your husband? My comments above refer to the not-primary taxpayer.

If your husband had HDHP coverage for all of 2017, then you this section doesn't really apply to you. Go back to where it asks if someone (your husband) had HDHP coverage on December 1, 2016. To skip the disability question, just answer "none".

[taxbryant5]

My husband, Brandon is the primary tax payer and holds our family insurance policy. It asked about the HDHP, which I selected yes. Then asked if it was a family or self only plan, I selected family. Then asks this
“Did Brandon’s HDHP coverage lapse in 2017 due to disability? We see Brandon had a break in HDHP coverage during 2017. Let us know f this is the result of a disability”
I can only chose “yes, the coverage ended due to disability” or
“No, the coverage ended for other reasons”
Neither would apply. We have the same coverage Jan 1,2017- Dec 31,2017.

[taxbryant5]

My husband, Brandon is the primary tax payer and holds our family insurance policy. It asked about the HDHP, which I selected yes. Then asked if it was a family or self only plan, I selected family. Then asks this
“Did Brandon’s HDHP coverage lapse in 2017 due to disability? We see Brandon had a break in HDHP coverage during 2017. Let us know f this is the result of a disability”
I can only chose “yes, the coverage ended due to disability” or
“No, the coverage ended for other reasons”
Neither would apply. We have the same coverage Jan 1,2017- Dec 31,2017.

[BMcCalpin]

I added the screen shot that I failed to do the first time. When you see this screen, enter "None" (even if it's not true), this will stop it from asking the disability question. So long as he had coverage in the HDHP for every month in 2017, this will not be an issue for him.

[taxbryant5]

Not sure I can answer none. I was told since we had a FSA we had to answer yes to having an HDHP...

[taxbryant5]

Not sure I can answer none. I was told since we had a FSA we had to answer yes to having an HDHP...

[BMcCalpin]

If you have a health FSA, then you cannot say "yes" to having an HDHP (even if you do). Having a health FSA makes you ineligible to have an HSA. "An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally can’t make contributions to an HSA." However, certain other limited FSAs are permitted - which one do you have?

If you are looking at the page that I attached to the answer above, you can certainly answer "none". TurboTax is only asking that question in order to see if you used the last month rule on 2016. If you were in the HDHP for all of 2017, then you don't need to worry about that, so avoiding the disability issue is not going to affect your return. You can say
"none" on that screen.

[taxbryant5]

I’m not sure I understand. We have an Flexible Spending Account(our money) and a Health Reimbursment Account thru my husband’s company.

[BMcCalpin]

If you have an HRA, you do not have an HDHP or an HSA. You seem to have wandered by accident into the HSA interview.
First do the following to erase your HSA information:
The safest - although brute force - way to fix this is to do the following:
1. make a copy of your W-2(s) (if you don't have the paper copies)
2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen
*** Desktop***
3. go to View (at the top), choose Forms, and select the desired form. Note the Delete Form button at the bottom of the screen.
*** Online ***
3. go to Tax Tools (on the left), and navigate to Tools->Delete a form
4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)
5. go back and re-add your W-2(s), preferably adding them manually

Note that neither health FSAs nor HRAs have any reporting requirements on your tax return, so there is nothing to enter. Note that this is not true of certain other FSAs (like the Dependent Care FSA).