Hi BillM223. Thank you so much for your reply! However, my google research indicates that qualified medical expenses paid for via HSA distributions count toward eliminating the excess contribution made by my employer to the HSA years ago. Otherwise, the same excess contribution would be taxable every single year. In fact, the IRS form takes this into account and has a line-item for the distribution that would result in the elimination of the tax liability (in my case). Unfortunately, the TuboTax software did not address any of these issues to take into account the elimination of the excess contribution via qualified medical expenses. I had the same tax liability for the HSA as I did last year, which seems incorrect.
