Spouse HSA is added as Incorrect Taxable amount in 1040

[bhuvanar]

The taxpayer and spouse each have separate HSA accounts with different HDHP coverage types — one has Family HDHP coverage and the other has Self‑Only HDHP coverage. However, TurboTax is incorrectly forcing the spouse’s Form 8889‑S to show Family coverage instead of Self‑Only. Because of this, TurboTax is treating the spouse’s $4,300 contribution as an excess contribution and is adding it as taxable income. This is incorrect, and I need TurboTax to allow the spouse’s coverage to be Self‑Only.

[NCperson]

@bhuvanar for a married couple, filing JOINT, one can not have Family while the other has Single, 

In effect, the total benefit for a married couple (under 55 years old) is $8600 - not $12,900.  TT is correctly forcing both to "family" - that is the way it works. 

[dmertz]

When both spouses are HSA eligible and one spouse has family HDHP coverage, the tax code requires both spouses to be treated as having family HDHP coverage.  The spouses are jointly subject to the family contribution limit, so if you contributed the family limit to your HSA, your spouse is not permitted to contribute anything to an HSA (unless age 55 or over, in which case that spouse is eligible to contribute their catch-up).

To avoid the penalty that TurboTax is correctly calculating, you or your spouse will have to request an explicit return of $4,300 of contribution before the due date of your 2025 tax return.