Additional Tax for Failure to Maintain HDHP Coverage

[jason-m-r-allen]

I had HDHP for 11 months in 2016.  I was unemployed in January.  So how should I be answering the "Additional Tax for Failure to Maintain HDHP Coverage" question.  Do I say no, and in which case how do I calculate and from which year?

[PaulaM · Accepted solution]

The question is referring to 2015. If you contributed in 2015 under last month rule, then you would have to maintain HDHP coverage for all of 2016 to not incur a penalty. Answer 'yes' if this was your case.

If you were enrolled in a HDHP/HSA for all of 2016, then you would answer 'No'. 

If you were enrolled in HDHP/HSA for part of 2016, then the answer is still 'No', but you will need to indicate which months that you were covered by an HDHP on the page, Were you enrolled in a High Deductible Health Plan (HDHP) in 2016? Penalties may be calculated if you contributed more than allowed for the number of months covered.

See attached example.

https://www.irs.gov/pub/irs-pdf/p969.pdf