Help understanding High Deductible Health Plan questions in turbotax

[Talon3]

I am confused by the question I am getting in the HSA section. TurboTax is asking me questions about my High Deductible Health plan. 

First, it asks: What type of High Deductible Health Plan did Lindsey have on December 1, 2022? The answer to this is Family. 

Then it asks a question I don't understand. It asks: "Did <wife's name> High Deductible Health Plan coverage lapse in 2023 due to disability? We see that <wife's name> had a break in HDHP health plan coverage during 2023. Let us know if this was the results of a disability." Then it offers the answer of choices of:

• Yes, the coverage ended due to disability
• No the coverage ended for other reason. 

I don't understand why we are getting this question. Lindsey's coverage did not lapse at all in 2023. Our 1095-C has 1a in all the boxes for each month.

What did I click or input wrong that it thinks this is the case? How do I fix? Does it matter? It doesn't seem to impact my taxes at all. I did by hand and got the same return that TurboTax is suggesting I am due. 

[MonikaK1 · Accepted solution]

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, 2019?”.  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.  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.

You can return to the beginning of the questionnaire to change your answer.

[Talon3]

Thank you for clarifying!

[KB044]

I went back and changed the answer for the spouse to none, but it didn't affect the tax owed amount at all. 

What else could I be doing wrong?

[MonikaK1]

Please clarify. What result were you expecting?

Changing the answer to the question as to what type of High Deductible Health Insurance your spouse had on December 1 to "none" will resolve the issue of TurboTax telling you that your spouse had a lapse in coverage when your spouse was covered under your plan. It won't necessarily change your income, depending on other factors in your situation.

[Jx04]

My spouse had their own HDHP plan for 2023, but when I select “self only”,Turbo Tax is still asking about a break in coverage.  Why is that if there was no break in coverage as my spouse had their own HDHP?  
Turbo Tax asks “Did ‘spouse’s HDHP coverage lapse in 2023 due to disability?  Since I had responded to the prior question that my spouse had their own HDHP in 2023, why am I asked the next question? 

[KrisD15]

To clarify, are you entering a 1099-SA?

If you are entering under 

Wages & Income

Less Common Income

1099-SA, HSA, MSA

The first screen states "Tell us about the health-related accounts you had in the tax year"

You would select Health Savings Account (HSA) for your spouse

Next screen asks "Did you use your Health Savings Account (HSA) to pay for anything in the tax year"

You would select "Yes" 

On the next screen you would enter the details from your 10990-SA, HOWEVER PLEASE BE AWARE that the program starts with a 1099-SA for the taxpayer listed first on the 1040. 

If that person did not get a 1099-SA, be sure to select the spouse on the screen. 

Later in the interview the program asks "What type of High Deductible Health Plan did "The First taxpayer listed on the 1040"  have on December 1, of the prior year?"  AGAIN, the program starts with the first taxpayer listed on the 1040. If this person did not have a High Deductible Health Plan (HDHP), select NONE. 

Please go back to that section and review your answers to the interview questions.

If only one person had a HDHP, you need to be careful that the program does not also ask about the other person.

If this error is showing another way, please continue your question and please provide more information if possible.

@Jx04 

[Rivercrab]

Thanks

The question was written in a very bad way imo.

[cybeyak]

I was confused by the same "coverage lapse" of spouse response, stemming from the same badly formulated "spouse coverage" question.

Googling I found same confusion come up from multiple people TT customers dating back a few years.

At what point does it occur to TT that they should reformulate the questionnaire to avoid this.

Unless this is some job security scheme to keep "experts" employed? if not, kindly, reformulate the question.

[vukitstj]

My spouse had me under his HDHP in Dec 2022 and all of 2023. I presume that this means he has a "Family" plan.

I also had my own HDHP in Dec 2022 thru mid-July of 2023. My HDHP coverage ended in mid-July due to work termination due to a disability that started the prior July (i.e., my work let me keep my HDHP for one year from the start of my disability...July 2022 to July 2023).

Neither of us has had an HSA or MSA in 2023.

For myself, I selected "Self only" for the Type of HDHP plan I had on Dec 1, 2022. I replied "Yes" to the question that my HDHP coverage lapsed due to a disability.  Based on the existing answers in this thread, I think that is correct answer, even though I was still covered for the rest of 2023 under my spouse's HDHP.

For my spouse, I selected "Family" for the Type of HDHP plan he had on Dec 1, 2022. However, I still get the question as to why his HDHP coverage lapsed???  His HDHP coverage never lapsed. What should I do?

Thanks,

Tom

[KrisD15]

If neither of you have an HSA, what questions are you answering? 

Those questions would only be asked if you contributed to an HSA.

[vukitstj]

Under "Tell us about the health-related accounts you had in 2023," I answered "None" for both my spouse and myself.  This then leads to the Q&A I went through above. 

[KrisD15]

That is asked in the 1099-SA entry section

Income

Less Common Income

1099-SA, HSA, MSA

Do you have a 1099-SA? Did you have an HSA in 2022? 

[vukitstj]

I did have an HSA in 2022. My spouse did not. 

[vukitstj]

Neither of us had an HSA in 2023