Question about Medical Insurance coverage

[charlenecavanaugh64]

I'm using TurboTax premium to do my 2019 tax return.  When I got to the section regarding medical insurance coverage, it asks "What type of High Deductible Health Plan did you have on December 1, 2018?".  I checked "None" since my medical insurance is via my former employer - not the ACC.  The program then asks me if I received my 1095-A assuming that my coverage was via the ACC.  Last year the program asked me if I had coverage for the entire year and then about my 1095-C...which I also have for 2019.  Can anyone please tell me, is there a glitch in the program (and if so, when will it be fixed), or am I entering something incorrectly (and if so, where did I go wrong)?

[DawnC]

The health insurance entry screens have changed for the tax year 2019.  There is no longer a penalty assessed, so the only insurance forms that have to be entered are 1095-As.  You are in the HSA section of TurboTax, not in the health insurance section.  

If you have a 1095-C, you do not have to enter it or answer any questions about health insurance this year.  Just keep it for your records.  

When you see the question What type of high-deductible plan did you have on 12/1/18? you are answering the question about the Health Savings Accounts (HSA).  These are not health insurance questions.  You only need to answer those if you have an HSA and those questions are usually generated because you have a code W in Box 12 of your W-2.  You can skip those questions if you do not have an HSA.  Click the link for more information.  

[charlenecavanaugh64]

Hi Dawn,

Thank you for your quick response, but I'm not asking about the question regarding Health Savings Accounts.  On that screen, it asks if you had a HSA, MSA or Medicare Advantage MSA or None of the above.  Since I didn't have any health savings account, I checked "None of the above".   When I click on Continue, it takes me to the next screen which specifically asks:  "What type of High Deductible Health Plan did you have on December 1, 2018?"  It is not talking about savings plans...but Health plans.  It further states "If you had HDDP on December 1, 2018, but failed to be an eligible individual for other reasons, select None.  It gives you three choices:  Family, Self Only or None.  Again, since I do not have coverage via an HDDP (the ACC), I selected none and that's when it goes on to state that I've had a break in my coverage and wants to know the reason for that break.  Given I've never participated in the HDHP (ACC), I don't know why the program is asking me this initial question let alone goes on to ask me further questions about a supposed break I had in the HDHP.  And if I answer the initial question about what type of HDHP plan I have as "Self Only", it again assumes I had a break in that coverage and is asking me why.  I have medical insurance coverage via my former employer and I have out of pocket medical expenses that the plan doesn't cover which I should be allowed to enter (and the program does let me do that), but I'm confused as to why it's assuming I (and possibly others) participated in the HDHP when, in fact, I did not (and it would seem that there should be an option to select "I have medical coverage via a non-HDHP plan" which should by-pass those screens asking about a break in HDHP coverage.  If you, or anyone, knows why the program is doing this and a way around it, please let me know.  Or if you can provide a way to contact TurboTax/Intuit directly to ask about this issue, I would be very grateful as I'm thinking this is a glitch in the program that needs to have an update made to correct it.  Thanks!

[BillM223]

"it goes on to state that I've had a break in my coverage and wants to know the reason for that break. "

TurboTax would tell you this in response to the question "What type of High Deductible Health Plan did you have on December 1, 2018?" only if it thought that you had an HSA.

My assumption must be that you somehow accidentally indicated to TurboTax that you had an HSA.

Rather than trying to agonize over it trying to figure it out, the easier thing would be to delete any HSA data in your return, then when you get back to the question What type of High Deductible Health Plan did you have on December 1, 2018? answer NONE as you did before. This time TurboTax should continue without comment.

To delete all HSA and HDHP data from the return, please 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

6. continue with your return.

[charlenecavanaugh64]

Hi Dawn,

I just wanted to give you an update on the issue I'm having with TurboTax Premium 2019.  I followed all your suggestions...I checked every page/screen and form in my 2019 return and nowhere does it state that I participated in an HDHP or any Health Savings Account.  I also checked my 2018 return and it shows where I stated I had health coverage all year and I had form 1095-C to show that.  So given that your suggestions did not resolve the issue, I called Intuit and spoke with one of their tax attorneys.  I explained the issue to him and he was able to see the screens that show what the issue is.  He agreed that it is not a user issue, but rather a glitch in the program.  He is sending info off to the Intuit developers to make them aware of this issue and get it resolved.  So thank you again for your suggestions, but at this point, I'm waiting for an update from Intuit to the program to resolve the issue as I don't want the IRS thinking a) that I participated in an HDHP when in fact, I did not and b) that it not only assumes I participated in the past, but also assumes I had a break in that coverage last year and tries to fine me or demand repayment for coverage in which I didn't participate.  Hopefully Intuit will get this issue resolved quickly so that I (and others who I'm sure are affected the same way) can file our returns without issue.  Thanks!

[BillM223]

@charlenecavanaugh64

The question "What type of High Deductible Health Plan did you have on December 1, 2018?" is asked of all taxpayers, not just ones with an HSA.

Why? Because you may have had an HSA and HDHP coverage in 2018 and not in 2019. These are exactly the sort of people that need to answer this question.

Unfortunately, the question does not tell you first that if you did not contribute to an HSA in 2018 or even have HDHP coverage, you should answer "None".

I would treat this screen as really being three questions:

1. Did you have HDHP coverage in 2018?

2. Did you contribute to your HSA in 2018?

3. If the first two are true, then What type of High Deductible Health Plan did you have on December 1, 2018?

Everyone else should answer None.

[David110]

I am also experiencing this same issue. I (husband) contributed to an HSA, but my wife did not. However, she was covered by a high deductible plan all of 2018 & 2019. But the prompts claim there was a break in coverage, so I cannot answer Yes or No to the Q offered, "Did (spouse's) High Deductible Health Plan coverage lapse in 2019 due to disability?"  Waiting for a resolution to this bug by Intuit. 

Thank you

[BillM223]

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).