I have the same problem with TT reducing 2019 medical expenses by the amount of an HSA distribution taken in 2019 for a 2018 medical expense, which the tax law absolutely allows. But TT programmers don't know enough about tax law to add a question to the HSA panel as to whether the distribution is for a current year medical expense or a prior year medical expense. TT automatically reduces the current year medical expenses by the amount of the HSA reimbursement for a prior year medical expense by incorrectly increasing the amount reimbursed. So taxpayers in that situation are being robbed of a deduction by the expensive TT software Premier with Live and Max.
The taxpayer result would be mathematically correct if the TT taxpayer increased 2019 medical expenses by the amount of 2018 expenses reimbursed, a solution suggested in this earlier reply. I just don't know if that adjustment would be acceptable to IRS if they query about medical expenses and the taxpayer explains the flaw in the TT software? I also don't know why TT programmers can't apply the tax law correctly by simply adding this sub-question about whether the HSA 1099 includes reimbursements for expenses in a prior year.
Replies welcome!
