HSA

[Tunahawk]

Interview mode, HSA section, telling me that my spouse "appears to have a break in her High Deductible Health Plan during 2019.. " , this is not true.. What is the glitch?

[AnnetteB6 · Accepted solution]

When one person on a joint return has Family High Deductible Health Plan (HDHP) coverage that includes their spouse, the question regarding what type of HDHP coverage the spouse has should be answered None, unless the spouse has separate HDHP coverage in their own name.  This will eliminate the message saying that the spouse has a 'break in coverage'.

[Tunahawk]

Thank You..I think that interview question could be improved, perhaps reword it or add an additonal selection such as "Does (or Did) not have any coverage other than through a Family HDHP through his/her Spouse?"  Although that may not cover all the bases..

[totraver]

What if the does have a HDHP plan coverage  of her own, through a state marketplace and is covered by her spouses HSA? In my case, I turned 65 in early 2019 and joined Medicare and a supplemental plan. HSA distributions are no relevant, it looks like, to my overall health care plan. We’re both self-employed. How do we deduct the contributions we made to the HSA? And can we deduct her premiums?  

[BillM223]

"What if the does have a HDHP plan coverage  of her own, through a state marketplace and is covered by her spouses HSA?" - I do not understand this sentence; it appears to be missing at least one word.

"How do we deduct the contributions we made to the HSA?" Does your spouse have an HSA? You, of  course, cannot contribute to your HSA now that you are on Medicare.

It is possible for the self-employed to contribute to an HSA, by making HSA contributions directly to the HSA custodian.

This is entered on the screen in the HSA interview with the heading "Let's enter [name]'s HSA contributions" on the second line where it talks about "personal" contributions.

This amount is deducted from gross income on line 12 of Schedule 1 (1040).

"And can we deduct her premiums?" - what premiums are you talking about, your spouse's health insurance premiums?

How you enter your self-employed health insurance premiums depends on whether your health insurance is COBRA, ACA (Obamacare), or regular health insurance.

Please see this TurboTax Help screen.

[Saints2000]

Hi Bill.

I have a question regarding Tax Form 5498-SA.  I'm currently not enrolled in a high deductible medical Plan  Box 12d on my W2 shows $1,300.  When I answered I'm not enrolled in a HDHP Turbo Tax came back to this question to confirm.  I called my health carrier and they confirmed that I don't have a HDHP.  Appears the HSA was started in 2017.

[DawnC]

Is the code W for Box 12d?   HDHP enrollment is required to make contributions to an HSA (health savings account).   If you have a code W (HSA contributions) in Box 12, you have received a tax benefit for the amount contributed to your HSA.  However, if you are not enrolled in an HDHP, you are not entitled to receive that tax benefit.  

There are penalties if you have an excess contribution to your HSA unless the excess amount is withdrawn before the due date of your return, including extensions.   Contact your employer or HSA plan administrator and let them know you need to get those contributions removed before 07/15.  

Although many taxpayers with HSAs initially set them up through their employer, the HSA belongs to the taxpayer, even if their employer funded 100% of the contributions. If the taxpayer leaves the company or switches their insurance to a non-HDHP, s/he can use any funds remaining in the HSA for qualified medical expenses but cannot contribute to the HSA if s/he is no longer enrolled in an HDHP.   Contributions can resume once the taxpayer re-enrolls in an HDHP, assuming all other HSA conditions are met.

What is a high-deductible health plan (HDHP)?

What is a health savings account (HSA)?

@Saints2000