First, you go to the HSA interview by doing a Search (upper right) for hsa and clicking on the jump-to link (Mac users must find HSA in the Topics List). You can do this anywhere in the return.
Second, the red exclamation appeared because you did an "override", that is, you changed a number that was calculated by TurboTax. This nullifies the Tax Accuracy Guarantee, which is why we discourage taxpayers from doing it.
Please remove any overrides that you have done.
"This is a several thousand $ problem if I can not include the
Qualified HSA funding distribution."
Third, I guess I have not made myself clear. If you do the workaround that I suggested, you will have the exact same tax as if the Qualified HSA Funding Distribution were reported in the "correct" way. That is, the workaround if NOT a several thousand dollar problem.
You see, if you do a Qualified HSA Funding Distribution, then the dollar amount of the 1099-R (the IRA distribution) is not reported on line 4b of the 1040, so you don't pay tax on it.
If you do the workaround as I described it, then the IRA distribution will be reported on line 4b, which increases your income, but then the HSA personal contribution will be reported on line 12 of Schedule 1 (1040), which carries to line 10a on the 1040, which will reduce your income back down to the level it was before the IRA distribution.
You see, you will owe exactly the same tax or have the same refund either way you do it.
Finally, when I told you to write a note to yourself and put it in your tax file, I meant your tax file at home, where you keep the paper copies of your tax returns.
Believe me, it is very unlikely that the IRS will ever notice this because they have so much other stuff to chase, and since the result is the same tax either way, if anyone ever asks, the IRS will understand.
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