I have an HDHP & HSA. The HDHP covers our whole family, including my wife. If I answer that my wife is covered by my HDHP, Turbo says there was a lapse in her coverage.

In all likelihood, one of you (your spouse in this case) does not have an HSA, so this person never went through the HSA interview to tell TurboTax that this person had HDHP coverage, so TurboTax got confused and thought that maybe this person's coverage "lapsed". Sound familiar? If so, see the bulleted list.

• If you or your spouse [whoever is NAME above] did not have an HSA in 2023, then answer NONE.
• If you or your spouse had an HSA but did not contribute to an HSA in 2023, then answer NONE. (Remember that each of you can have an HSA).
• If you or your spouse was covered by an HDHP policy for each month of 2023, then answer NONE.

That is, answer NONE to the question "What type of High Deductible Health Plan did [name] have on December 1, 2023", because the question doesn't apply to [NAME].

Remember that each of you can have an HSA, so there are two subsections of the HSA interview, one for each HSA owner. Unfortunately, it is not obvious to you that while you answered the HDHP questions for you in the HSA interview, you never answered any HDHP questions for your spouse in the HSA interview, so TurboTax thought (wrongly) that your spouse did not have HDHP coverage for 2024, but when you answered that question for your spouse's coverage in December, 2023, then TurboTax thought that your spouse's coverage for 2023 had lapsed for 2024. So just answer NONE.

Yes, this question could be handled better.