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posted Jun 5, 2019 11:06:21 PM

We see [spouse] had a break in HDHP health plan coverage during 2017. I see answer to 2016 but not 2017 yet.

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Level 13
Jun 5, 2019 11:06:24 PM

If you are asking about your 2018 tax return, the issue is the same as in previous years.

At the end of the HSA interview, TurboTax needs to ask "What type of High Deductible Health Plan (HDHP) did [name] have on December 1, 2017?" to find out if your spouse took advantage of the "last-month" rule at the end of 2017. The last-month rule allows a taxpayer to use the full annual HSA contribution limit, even if the taxpayer was not in the HDHP all year.

Yes, 2017 is correct in this case.

This message typically occurs when one spouse does not have an HSA so never enters the HSA interview for that person. This means that you never told TurboTax that your spouse had HDHP coverage in 2018, so when you answered the question "What type of High Deductible Health Plan (HDHP) did [spouse name] have on December 1, 2017?" with Self or Family, then TurboTax assumed that there was a break in coverage.

  • If your spouse doesn't have an HSA or
  • if your spouse was covered by an HDHP for all of 2017 or
  • if your spouse was covered by an HDHP for all of 2018 or
  • if your spouse was never covered by an HDHP

then go back to the question, "What type of High Deductible Health Plan (HDHP) did [name] have on December 1, 2017?" and answer "none". This will skip the check that doesn't apply to your spouse anyway.

1 Replies
Level 13
Jun 5, 2019 11:06:24 PM

If you are asking about your 2018 tax return, the issue is the same as in previous years.

At the end of the HSA interview, TurboTax needs to ask "What type of High Deductible Health Plan (HDHP) did [name] have on December 1, 2017?" to find out if your spouse took advantage of the "last-month" rule at the end of 2017. The last-month rule allows a taxpayer to use the full annual HSA contribution limit, even if the taxpayer was not in the HDHP all year.

Yes, 2017 is correct in this case.

This message typically occurs when one spouse does not have an HSA so never enters the HSA interview for that person. This means that you never told TurboTax that your spouse had HDHP coverage in 2018, so when you answered the question "What type of High Deductible Health Plan (HDHP) did [spouse name] have on December 1, 2017?" with Self or Family, then TurboTax assumed that there was a break in coverage.

  • If your spouse doesn't have an HSA or
  • if your spouse was covered by an HDHP for all of 2017 or
  • if your spouse was covered by an HDHP for all of 2018 or
  • if your spouse was never covered by an HDHP

then go back to the question, "What type of High Deductible Health Plan (HDHP) did [name] have on December 1, 2017?" and answer "none". This will skip the check that doesn't apply to your spouse anyway.