Help understanding High Deductible Health Plan questions in turbotax

[dream_state_x]

What if my wife had her own HDHP (self-only) in ALL of 2023 (including December) but she joined my HDHP in 2024  under a family plan? How do I answer the two questions "what type of HDHP did [wife] have on Dec 1, 2023?" and "Did [wife] HDHP coverage lapse in 2024 due to disability?"

I ask because I answer the first question as "self-only" but get  the follow-up lapse in coverage question. She never had a lapse in coverage - she joined my family plan in 2024. What do I do?

[KrisD15]

Did your wife overfund her HSA in 2023 or 2024?

I do not see that question (asking about 2023) come up unless there was excess contributions.

You should be selecting Family coverage all year for you both.

If you select Family Coverage all year for both and still get an error, please give us any more information you think may be relevant.  

[dream_state_x]

Neither one of us over funded our HSA. No.

She was on a individual plan in 2023. All of 2023. In January of 2024 she joined my family plan through my job. I made all the HSA contributions in the family HDHP in 2024. She made no contributions to the 2024 HSA due to the plan coming from my job.

[DawnC]

Both of you should indicate you had Family HDHP every month of 2024.   But you will be the only one that contributed to your HSA and there will be no contributions to her HSA.   @dream_state_x 

If you are showing excess contributions (or not and are just curious), take a look at this TurboTax FAQ.  

[dream_state_x]

I agree. However, the TurboTax program doesn't seem to let me. Here is what I see:

I progress through the questions in the health/HSA section:

1. Starting with questions about me. Asking me what type of coverage I had in 2024 and for how long. Which I answer "family HDHP" and "all year".

2. It asks if I over-funded my HSA in 2023. Which at that time I was on a self HDHP. And the answer is no.

3. It continues with the questions about my wife's coverage on December 1 2023. Which at that time she was still on her self HDHP plan from her employer. So we answered "self".

4. It claims she had a lapse in coverage. Which she did not because in January of 2024 she dropped her self HDHP plan from her job and was now covered under my jobs family HDHP.

We never over-funded any HSA in 2023 or 2024. We never did not have a HDHP of some type. The TurboTax program seems to be fixated on 2023 for her and it never asks about 2024 for her.

[dream_state_x]

What do I do in the following situation:

1. The question of what type of HDHP did (wife) have on Dec 1, 2023? My wife had an individual plan through her job on that date (and all year) but she switched to my jobs provided coverage on January 2024. 

We did not over pay into our HSA for 2023 or 2024. However, in 2024 I was the only one making contributions to the mentioned family plan.

So, to that question I answered "self" because she still had coverage from her job at that date. Then the next question:

2. Says she had a lapse in coverage. Which isn't true but the question gives two options for

Yes due to disability and

No, other reasons.

I answered no here and it proceeded to ask me about her coverage for all of 2023 and the contributions made. Then in the end it concludes that she doesn't apply to the "last month rule". It never asked about 2024 coverage for her even though she was on my family plan.

Did I fill it out correctly for our situation?

[RobertB4444]

The way that you did it was just fine.  Congratulations on getting through it!

@dream_state_x 

[dream_state_x]

Thanks! I appreciate the comment.

I do have one remaining question though:

TurboTax never directly asked about my wife's coverage for 2024 (she was on my family plan offered through my job). Is there a way to enter this information in? Does it matter? 

Thanks again.

[MarilynG1]

No, since you had a Family Plan HDHP, that covers your spouse, so need for TurboTax to ask.   It would only ask if you had a Self-Only Plan. 

@dream_state_x 

[GHJ]

This is not the first year I've had to check this. I wish Turbotax would update their software to you know, address obvious issues.