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June 5, 2019
Question

Why am I being asked for 2016 HSA contributions on my 2017 tax return?

  • June 5, 2019
  • 1 reply
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1 reply

June 5, 2019

Towards the end of the HSA interview, you probably saw "What type of High Deductible Health Plan did [your name or your spouse's] have on December 1, 2016?" This is actually correct and refers to the "last month rule".

TurboTax needs to know several things:

1. Did you or your spouse have HDHP coverage on December 1, 2016? (yes, 2016)

2. If so, you or your spouse may have taken advantage of the "last month" rule, which allows taxpayers in HDHP coverage on December 1 to use the full annual amount for the HSA contribution limit (back in 2016).

3. BUT, the catch is that you or your spouse has to stay covered by the HDHP for the next 12 months (i.e., all of 2017), or else the annual limit for 2016 has to be adjusted after the fact.

4. You evidently indicated earlier that you or your spouse either changed coverage in 2017 or had no coverage for at least part of the year - this triggered the question above.

In any case, the screen heading is correct, and just answer it as it is literally written.

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