Did (name) HDHP coverage lapse in 2022 due to disability? My coverage never lapsed, Husband and i each have our own- how do i proceed?

[adavis1]

This is after answering questions about my husbands HSA (i selected that i do not have one but i think it thinks that i do?) The previous screen asks what type of HDHP i had on Dec1, 2021 and i chose self only- this has not changed

[tagteam]

I will page @Mike9241. Check back later.

[PatriciaV]

Please clarify that you and your spouse have separate HDHP coverage, active in 2021 and in 2022, and neither lapsed due to disability.

[adavis1]

That's correct, we have separate HDHP coverage (self, through our respective employers) and neither lapsed. 

I'm getting to this screen while filing out info about my husbands HSA (he has an HSA account and i do not).

Thanks

[BillM223]

Your issue is with the question that asks "What type of High Deductible Health Plan did [name] have on December 1, 2021?"

​​​​​​​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 2021 (yes, 2021). 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 (2022).

***NOTE*** This question occurs for the taxpayer who does not have an HSA (as you saw), so never had a chance to tell TurboTax in the HSA interview what their HDHP coverage was for 2022.

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 2021, then enter NONE 
• If you had no HDHP coverage for all of 2021, then enter NONE.
• If you did not have an HSA in 2021, then enter NONE.
• If you had an HSA in 2021 but did not contribute to it in 2021, then enter NONE.

Only taxpayers who had their own HSA in 2021 AND who contributed to their own HSA in 2021 should answer “Family” or “Self” or “None” (which can be the right answer in some cases).

@adavis1

[oneillio]

If only one spouse has an HSA, go back to the VERY beginning of the HSA summary where this is check boxes for each type of  health related accounts and make sure the spouse without the HSA has the check box for "none" checked before continuing. This solved the issue for me and I don't get the prompts about my spouses coverage anymore.