Never lost health coverage, but: "Did x's HDHP coverage lapse in 2017 due to disability? We see x had a break in HDHP coverage during 2017. Let us know...disability."

[AnnetteB · Accepted solution]

The question on the page before you see that there was a “lapse” in coverage is causing the issue.

On the previous page you should see the question, “What type of High Deductible Health Plan did [spouse] have on December 1, 2016?”.  The choices are Family, Self only, or None. 

If the spouse had been covered under the taxpayer'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 the spouse held in their name on December 1, 2016.  If the spouse had their own separate HDHP on that date, then choose the type of plan that the spouse had.  If instead the spouse was covered under the plan in the taxpayer's name, then you should choose None.

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

[emacknightee]

Hi Annette, your answer is helpful, however, this question is 100% misleading.  Please have the team re-work this Q&A session on the wizard.  Thanks!

[emacknightee]

"If the spouse had been covered under the taxpayer's family plan, you might think you should answer Family to the question."  This is 100% true

[bradj]

My wife and I both have coverage through our own employers - how do I fill this section in as I have had coverage for all months but it tells me that my coverage has lapsed because I do not have an HSA or MSA?  Or do I by definition have one of those accounts that I just don't know about?

[blairhome]

This issue has not been fixed on the 2018 return. It is worded exactly the same way and still completely misleading. Turbo Tax - please fix!

[vrlloyd]

Individuals that are self employed but paying premiums with no designated health account (i.e., HSA, MSA,MSA)  should choose none and the self only option for HDHP.  If you have not entered your premiums under self-employed, or business section, you will eventually get to do so in this section after you have been asked about all other expenses pertaining to medical. You will eventually be asked to enter premiums.  Be sure NOT to double dip by adding premiums twice.  Go back and double check to see if you added them under the business section for the self employed. This was very confusing to me;  but I realized that any plan that is not an HDHP is considered as a discontinuance of health plan coverage (aka, short-term or supplemental). Hope this helps. Be sure to double-check with an expert...

[Tax_Nerd1]

This issue has not been resolved on the 2019 return either!!  TurboTax - Please fix this!!

[vijayar]

2019 Tax return and it is not fixed!

[AnnetteB6]

Just before you see the message stating that your spouse had a lapse in coverage, you should see the question, “What type of High Deductible Health Plan did [spouse] have on December 1, 2018?”.  The choices are Family, Self only, or None. 

If your spouse had been covered under your family plan, the answer should be None. 

It is referring to what type of plan your spouse held in their name on December 1, 2018.  If your spouse had their own separate HDHP on that date, then choose the type of plan that they had.  If instead your spouse was covered under the plan in your name, then you should choose None.

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

[sdbaker22]

Annette,

Thank you for the clarification.  I think what the community is asking is for that clarification to be within the turbo tax application so that there isn't a need to go to the forum for clarification.

Thanks!

[mac5]

It is referring to what type of plan your spouse held in their name -- 

PLEASE, PLEASE, PLEASE change the wording of the question in Turbo Tax to that! 

So many of us who are trying to answer correctly, but when we do get a strange situation.

[blairhome]

exactly! Turbo Tax needs to change the question in the application itself.

[Tax_Nerd1]

The guidance should be updated to make this more clear.  It has been the same confusing guidance for several years.

[MCL_Colorado]

This is still an issue in TurboTax 2021.  I echo the other contributors by asking for this area to be improved with more clarity in the questions, help screens, etc.