I am confused on handling of the HSA in TurboTax. My W-2 indicates $5049.98 for code "W". This is what I and my employer put in the account. I received a 1099-SA for $1775. That is the amount I took out to pay medical bills and box 3 shows a "1". However, when I enter the 1099-SA form and answer the HSA questions my "Federal Refund" on the top of the screen goes up by approximately $1,414 as if TurboTax is reducing my taxable amount by something to do with the 1099-SA. Since I used all the money for medical expenses, enter the 1099-SA with no additional contributions and answering "yes" to used for medical expenses should not have impacted my taxable income.
What could be going on here?
