HSA account of a 24 year old who was not a dependent in 2021 but he is dependent in 2022.

[ajartax]

My son, full time student, was 24 in 2021.  In 2021 his income was above $4,400. So  he filed his own tax return as a non-dependent, had his own HSA account and contributed to it.  However in 2022, his income is below 4,400, and can be claimed as dependent on parent's tax return.  He is on Parent's HDHP.  He still has his HSA account from 2021, but has not contributed to that plan in 2022.  So on his tax return, Turbo Tax HSA interview questions what do I  input for this question:
Did you have HSA Account in 2022?
Were you covered by HDHP in 2022?
What type of coverage did you have in 2022?
a. I was covered by Family plan every month of the year
b. I was covered by a self only plan every month of the year
c. I had a different plan types at different times of the year

If I select a (famly plan), TT gives me errors on form 8889, TT says that he cannot be covered by Family Plan as he is being claimed as dependent by somebody else. 
Please advise. 

[AnnetteB6]

If there were no contributions or distributions from your son's Health Savings Account (HSA) during 2022, then Form 8889 is not required as part of his tax return.  You can uncheck the box regarding him having an HSA and skip this section.  The purpose of this section of TurboTax is to gather the necessary information to fill in Form 8889.  

The fact that he still has the HSA is not reported as part of his tax return and the information for Form 8889 is only needed if there are contributions or distributions from the account.

[ajartax]

As a dependent he is not able to contribute to HSA.  But is my son able to use his HSA to fund his medical expense as a dependent?  If so it will generate a form 1099-SA and in that case what should I answer to those questions?

[Vanessa A]

Yes, per pub 969, even if you son is claimed as a dependent you he can still receive tax free distributions for qualified medical expenses from his HSA.

A 1099-SA is a form that you would receive from the plan administrator with the amounts of his distributions.  

When you enter the withdrawal, it will generate a form 8889.  Which questions in particular are you concerned with?  You will answer the questions as they apply.  Your son will need to file a return even with no taxable income to report this distribution. 

[ajartax]

Here are the TT questions and my answers:

1.  Did you have HSA acct in 2022:   yes  (I have to say yes here in order to input 1099-sa info)

2.  Did you use your HSA to pay for anything in 2022: yes

3.  After this I am prompted and I input the 1099-sa information.

4.  The question that I do not know what to answer is : were you covered by HDHP in 2022? 

What do I answer to that question?   The 24 year old dependent son is covered by HDHP plan of his Parent. He does not have his own plan.  The only answer that does not generate errors on 8889 form is "no I did ot have any coverage".   If I select "Yes, I was covered by HDHP during atleast 1 month in 2022" ,  TT requires me to select "Family", "Self" or "different plan each month", and  any of these options generate errors on 8889.  To resolve these errors, I have to uncheck coverage and say "no I did not have any coverage".

[BillM223]

1,2,3 - your answers are good.

4 "were you covered by HDHP in 2022?" - yes, if he made any contributions to the HSA. If he didn't then, that's fine, say no and don't indicate any HDHP coverage, and continue.