Turbotax is asking: "Did wife's High Deductible Health Plan coverage lapse in 2021 due to disability?" Not sure why it thinks her coverage lapsed?
Also, below the main statement is: "We see wife's name had a break in HDHP health plan coverage during 2021. Let us know if this was the result of a disability."
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, 2020?”. The choices are Family, Self only, or None.
If your spouse had been covered under your 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 your spouse held in their name on December 1, 2020. 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:
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, 2020?”. The choices are Family, Self only, or None.
If your spouse had been covered under your 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 your spouse held in their name on December 1, 2020. 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:
"If your spouse had been covered under your family plan, you might think you should answer Family to the question."
Yes, we all think that, especially since the next sentence says "If [spouse] had coverage on December 1, yyyy, but failed to be an eligible individual for other reasons, choose None."
This trips me up every flipping year and it's ridiculous that TT has still not clarified the language on this page.
Hopefully me getting annoyed enough to leave a comment this year will lodge it in my memory for next year.
But, at least, thanks for a clear answer that was easy to find when I searched for it...
My spouse did have his own HDHP on Dec 1, 2020, but he switched to my family plan on Jan 1, 2021. He did not have a lapse in coverage though, and it still seems to think that he did. I don't know what to answer here.
Answer no to the HDHP question since he was on your plan on January first.
Sorry if I'm missing the answer here...
I selected 'family' as I have a plan that covers myself and my children. I selected 'self-only' for my wife as she has her own coverage through her own employer. Is this not correct? Unclear why Turbotax thinks there is a lapse in coverage. Thanks
Agreed! This trips me up EVERY single year also. I would only take a moment for TT to clarify the language, and I don't know why they haven't
Its baffling that turbotax will not clarify this. I get trumped by this every year.
Intuit needs to reword those questions. They are confusing. Just need to add a comment to the page that asks "What type of High Deductible Health Plan did xxxxx have on Dec..." to say something like, "If xxxxx did not have their own plan, but was included in yyyyy's plan, then select "none". Right now it says, "If xxxxx had HDHP coverage on Dec 1, 2021, but failed to be an eligible individual for other reasons, select None."
YOU NEED TO FIX THIS AND AT A MINIMUM REWORD IT!!!
This is one of THE WORST, MOST CONFUSING things I've ever encounter in your software and I've been using TT for 20+ years.