HDHP / HSA question

[shell1250]

My family and I were covered under my husband's HDHP through his employer all year.  We had $6000 withheld from his checks and added to our HSA (side note, on his W-2 this is listed as an "employer contribution"? But I feel like that was our contribution? not sure?).  When I put the HSA info into turbotax it brought up a screen that said "we see that Michelle had a lapse in HDHP coverage, was this due to disability?" but it doesn't give me an option to say "no, there was no lapse in coverage".  What do I do about this? Also, after I enter the $6000 contributed to the account and the $4000 that was disbursed for medical expenses, it shows as "0" on the main screen under the HSA section.  Does that make sense?  Thanks for the help!

[AnnetteB6 · Accepted solution]

Just before you see the message stating that you had a lapse in coverage, you should see the question, “What type of High Deductible Health Plan did [spouse] have on December 1, 2019?”.  The choices are Family, Self only, or None. 

Since you were covered under your husband's family plan, you might think you should answer Family to the question.  However, the answer should be None. 

It is referring to what type of plan you held in your name on December 1, 2019.  If you had your own separate HDHP on that date, then choose the type of plan that you had.  If instead you were covered under your husband's plan, then you should choose None.

With regard to the contributions shown on the W-2, they are labeled as 'employer contributions' because they were made through payroll deductions from the employer.  Those are your contributions.  You will only need to enter the information about the amount contributed on the W-2 in box 12 with code W in the W-2 section of your return.  The HSA contribution amount will automatically transfer to the HSA section of your return.  You would not enter the contributions again in the HSA section if they were included on the W-2.  

To go back to the section of your return to answer the questions again, use the following steps:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
• This opens a box where you can type in “hsa” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to hsa”
• Click on the blue “Jump to hsa” link and edit your information