Sorry, I have been under the weather.
It appears to me that this section is trying to ascertain what amount of your HSA dollars from before 2011 have been spent in the subsequent years. The screen (which was updated this year because of changes to Schedule I) probably could have been done better. That is, if you did not have an HSA prior to 2011, this entire calculation just doesn't apply to you and you should be able to skip it. (this would result in no adjustment to Schedule I, which would seem to me to be correct).
But the way these questions are phrased is confused. I think that perhaps the second question should be "HSA distributions in 2022 THAT USED DOLLARS IN LINE 1" would be more clear. In your case, of course, since there were no HSA dollars prior to 2011, you could not have distributed any such dollars in 2022.
And of course, "the amount of 2022 distribution used for medical expenses" is irrelevant, if the amount for the second line is zero.
So I would answer
1. 0 (zero)
2. 0 (zero)
3. 0 (zero)
This has zero effect on your state's taxable income, which seems to be correct, because since you had no HSA prior to 2011, there does not need to be an adjustment.
Make sense?
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