Are your HDHP coverage months resetting back to "NONE" every time you reopen your file?

[user17652141557]

My balance owed kept shooting up every time I reopened my file. 

I finally figured out that the screen where you input the months you were covered under a HDHP plan kept resetting all the months back to "None."

I reinput the entries and saved the file. 

Reopened the file . . . all entries back to "None" again. 

As a result our HSA distributions are showing taxable when they shouldn't. 

Either I'm doing something wrong or there really is a bug in the program.

[BillM223]

I assume that you are entering the HSA interview repeatedly. In the HSA interview, there is a screen that asks "Was [name] covered by a High Deductible Health Plan (HDHP) in 2025?" I assume that you answer "Yes", right?

Then, two screens later, you are asked, "What type of HDHP coverage did [name] have during 2025?"

What did you answer here? Different plan types at different times of the year? Checking this is likely to reset the HDHP coverage for each month until you enter it again.

When you close the return, happy with the HSA numbers, and then reopen it to see a different refund, where is the exact location that changes from time to time on the 1040? We need to determine exactly what is changing, because the month by month HDHP coverage is probably changing because you reopened the HSA interview.

[user17652141557]

Yes to choosing all the correct answers before then selecting each month for which we were covered individually as you described. 

What the program is doing is clearing out all those choices when I reopen (when TT recalculates) the file.  

If you choose anything other than "was covered by a Family plan every month of the year" so you don't ever complete the screen with all the months and dropdowns, it clears it all out.  I even chose "had different plan types at different times of the year" and completed all individual months as having a plan (No "None" choices) and it still cleared it all out. 

FYI - There is only 1 month, January, where we did not have a HDHP so we are eligible.  

[BillM223]

Yes, you are describing the way the software works - if you indicate that you had different types of HDHP coverage at different times in the year, TurboTax expects you to enter each month anew. It obviously does not need to do this if you check that you had Family or Self-only coverage all year.

You say that your balance owed increases every time you reopened your return. Without going into your return (i.e., don't enter the interviews), please view your 1040 and see what changed so that we can track down the source of the change.

If you are using TurboTax desktop, go in Forms mode (upper right).

If you are using TurboTax Online, please see this FAQ for how to see your 1040 and Schedules 1, 2, and 3.

How do I preview my TurboTax Online return before filing?

[user17652141557]

It is NOT saving my choices in the "Which months?" screen. 

I'm not changing my answers every time I complete that screen.   

It is LOSING my answers on Save. 

As a result, it is taxing my HSA distribution on Form 8899 which is carried over to Schedule 1, Item 8F, which is carried over to 1040 Line 8. 

Are you part of the Turbotax programming team?

[BillM223]

Let's clarify your situation.

Line 8f on Schedule 1 (1040) is the sum of HSA distributions that were NOT for eligible medical expenses (line 16 (8889)) plus any taxes due from failure to maintain HDHP coverage (line 20 (8889)).

Did you receive a 1099-SA for taking distributions from your HSA? If so, when you entered it, did you indicate that the whole amount was for qualified medical expenses? NOTE: Whether or not the distribution is taxed is totally independent of your HDHP coverage.

Can you see your form 8889? Is there anything on line 20? If so, you may be taxed for failure to maintain HDHP coverage (i.e., you used the last-month rule in 2024 to increase your contribution limit, but did not keep HDHP coverage for the entire subsequent year, as required.

In short, I don't believe that what you are seeing is the result of any HDHP coverage not being saved.

So, please answer the following:

1. Did you have a form 1099-SA? 

If so, was the entire distribution for qualified medical expenses?

2. How did you answer the question, "What type of High Deductible Health Plan (HDHP) coverage did [name] have on December 1, 2024?" 

Did you answer either Self or Family? 

And if so, may I confirm that you did not have HDHP in every month of 2025?

To repeat, what kind of health insurance did you have on December 1, 2024? Something other than HDHP? 

[dmertz · Accepted solution]

There is currently a bug in the step-by-step entry of HDHP coverage.  If you indicate in step-by-step mode that you had differing coverage throughout the year, TurboTax incorrectly marks a box that is intended to indicate that you had no coverage at any time during the year rather than leaving that box blank.  At present, a proper entry can only be made using forms mode of the desktop version of TurboTax so as to avoid the inappropriate marking of the box that indicates no coverage at any time during the year.

[user17652141557]

Good things to clarify, NONE of which matters if Turbotax is not saving my entries when I complete the screen:

"Tell us about ________'s High Deductible Health Plan (HDHP) coverage for 2025. Then select Calculate Max Contribution Limit to see their contribution limit. If they were covered by a High Deductible Health Plan (HDHP) and Medicare or another non-HDHP plan during the same month, select None. 

The "Calculate Maximum Contribution" after completing the screen shows the maximum amount as expected. 

After saving and reopening, ALL entries are set back to "None."

[user17652141557]

Thank You!

I'll go over to the form and correct it. 

So frustrating . . . 

[user17652141557 · Accepted solution]

BUG FOUND AND WORKAROUND FOR FORM 8889:

The program is checking the "None" box under "If you had the same coverage every month of 2025" even if you answered "No" in the interview and have completed the individual month entries.

Once I unchecked that "None" entry (in Forms Mode), the program calculated correctly.   

Thank you @dmertz!