For my 2023 taxes, I noticed on the smart worksheet for line 18 (Form 8889) that TurboTax shows that my husband has no medical coverage for december 2022 (It has a check beside "none"). I have had an HDHP plan since 2019 with family coverage (he is covered the entire time and an eligible individual). There have been no breaks in coverage from 2019 to date and no changes to the HDHP or HSA for those years. I have had an HSA since 2019, but didn't realize he could have one. He opened one in 3/2024 so we could contribute and reduce our overall tax liability. That is also the reason I can now see the smart worksheet for him for line 18 because he now has his own HSA. This has not shown up for him before he had an HSA. Turbotax is not showing any penalties, additional tax, or additional income that we should recognize.
Q: Do I need to do something to correct this? I'm concerned that it shows he didn't have coverage in december 2022 ("none"). It seems like it is invoking the "last month" rule, but I don't know why. I just don't want any trouble in future years. The smart worksheet says "none" is what is entered if you have medicare. That is partially what concerns me because if you have medicare you aren't eligible to contribute to an HSA. Neither of us have medicare. I'm thinking that the smart worksheets probably aren't available to IRS, so maybe this will just go away next year unless TurboTax carries it forward somehow.
Many thanks to anyone that can shed any light on this.
