Hi Nancy, I just figured out where I went wrong. I changed the 1099-R Line 5 (Employee contributions/Designated Roth contributions or insurance premiums) by mistake. Further down on the form inside TT is a section called "Insurance" and I entered my transfer to the "Amount of health savings account (HSA) funding distributions" line. Then the taxes changed correctly. So it was my misunderstanding of the direction from others - I have written it out in painstaking detail here for anyone who follows with the same question.
I do have to point out that, if the online version asks this question in the interview and the desktop version does not, it is a bug in TT that should be easily and quickly corrected. There should be no reason to manually alter the forms whatsoever if TT is operating correctly.
In any case, this was my last hurdle to complete my taxes and I am now DONE! Next year, I will keep a log of how much time my taxes take, even with the help of TT. I know it was more than 80 hours this year.
