HSA

[pha3d]

I am still employed and my wife is retired. We are both covered by my employer's HDHP. I have an HSA. My wife, who is over 65, has Medicare part A only. After entering my HSA info, Turbotax Deluxe asks about my wife's HDHP coverage which I enter as family. But the next question seems to indicate that Tubotax sees a lapse in my wife's HDHP coverage. What's going on?

[SharonD007 · Accepted solution]

There is a question on the screen before you see the message that your wife had a lapse in coverage which asks What type of High Deductible Health Plan did [spouse] have on December 1, 2022? The options are Family, Self only, or None. Since your wife was covered under your family plan, you should answer the question None. The question is referring to the HDHP than your wife had in her name and your post indicates that she did not have one in her name.

 To correct your issue, return to the section and answer the questions again. Follow the instructions below:

1. Sign into TurboTax and open or continue your return
2. Type hsa in the search box
3. Select the Jump to link in the search results
4. Edit your answers in the HSA interview and make sure that you answer None for your wife.

[Mike9241]

since your spouse was covered by medicare she had non-HDHP coverage for 2022 and therefore no HSA contribution can be made for her if covered for the entire year. therefore your HSA limit is $3650 or $4650 if you are over 55.  for any month she was not covered by medicare an additional contribution of $3650/12 can be made. note there is a 6-month lookback for medicare so if she applied in July Medicare would go into effect in January).  for months she was covered by medicare taking into account the lookback you would indicate self-only HDHP coverage. there is nothing improper about actually having family HDHP coverage  just that medicare disqualifies her from getting an HSA contribution 

[pha3d]

Thanks for the in depth explanation. Very clear.