Why does turbo tax assume my high deductable health plan lapsed in 2018 when it didn't?

[jp1300]

I told turbo tax I don't have an HSA or an MSA in 2018 but I did have a family plan that is a HDHP.  Now, it's assuming my HDHP has lapsed in 2018.  This does not make sense

[BMcCalpin · Accepted solution]

Are you referring to the "lapse in coverage" message that you immediately see after the question "What type of HDHP coverage did [name] have on December 1, 2017?"

This is a poorly worded question that really wants to know if you took advantage of the last-month rule in 2017. This lapse message happens either to taxpayers who don't have an HSA and didn't realize that this question didn't apply to them (so answer "None"), or had HDHP coverage but no personal HSA, so never had the chance to tell TurboTax in the interview that they had HDHP coverage in 2018 (only the taxpayer who has an HSA answers those questions).

If the taxpayer who got this message does not have an HSA (even if he/she has HDHP coverage), then read the following:

So for each of you who does not have an HSA:

• if you (or your spouse) were covered under an HDHP for every month in 2017 or
• if you (or your spouse) were covered under an HDHP in every month of 2018 or
• if you (or your spouse) made no HSA contributions in 2017 at all or
• if you (or your spouse) never had in 2017 or 2018 any HDHP coverage

then you (whichever of you) should enter "None" for the 12/1/2017 answer even if you were covered, because this last-month question doesn't apply to you.