TT HSA dialog thinks my wife's insurance lapsed

[millgarten]

Hi,

I purchase CIGNA health insurance through my work.  The policy covers me and my wife.  She has no other medical insurance.  We've had continual coverage for years, including 2022.   I also have an HSA.  For the purposes of HSA, our insurance qualifies as a High-Deductible Health Plan (HDHP).  In 2022 my wife paid for some qualified medical expenses using the HSA.   I received the corresponding 1099-SA reporting the distribution.

We are filing jointly.  I entered my 1099-SA into TurboTax.  For the "This 1099-SA is for" question, I selected myself (b/c the 1099 "Recipient's name" field has my name). Later on it asked more questions and auto filled my contribution (from my W-2).  It asked was I covered by an HDHP (yes) and what kind (Family, all year).  I get to "HSA Summary" and my wife and I each have a column, all hers are zero and mine have the correct contribution and distribution entries.

Here's where it starts to get strange.

It asks what kind of HDHP Sharon had on December 1, 2021?  So I selected Family, b/c she's on the same insurance I am.  On the next screen, it has a note that says "We see Sharon had a break in HDHP health plan coverage during 2022."  WTF???  so at this point I know something's screwed up.  I'm given a choice of either "Yes the coverage ended due to disability" or "No the coverage ended for other reasons".

Can someone pls help me figure out where I went off the rails on the HSA part of this?

thx

Wayne

[millgarten]

I should also add: I'm using "self-employed" turbotax b/c my wife has some side jobs and, as I said, we're filing jointly.  I of course am NOT self-employed, and we are covered via a CIGNA health insurance purchased through my company benefits

[millgarten · Accepted solution]

I consulted with co-workers who use TT and found out this is the answer: 

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/high-deductible-health-plan-elig...

Basically, for the question "What kind of HDHP did my wife have on December 1, 2021?" I am supposed to select None instead of Family, because my wife did not have HDHP coverage herself (separately). She was always covered under my family plan. 

[rbessey2]

This is the STUPIDEST  aspect of turbotax yet....why not frame the question as "was John COVERED by a HDHP in 2022?" with the followup of "Was he covered by his own or a spousal HDHP?" and then tailor the menu if he has his own, ask about HSA etc.  I HOPE TT FIXES this next year, it is NOT a clear question.

[Wiz222]

Guess what it is NOT fixed in 2023 TT. I had the exact same scenrio except my wifes name is Cindy not Sharon. 🙂 Found this answer! Whew!