The Box 2 (earnings) in the Form 1099-SA is $0. So, I think I can skip adding anything as Other Income on Line 8 on Schedule 1
So, from what I understand of what you said, I will change the distribution code to 1 (normal distribution) on the Form 1099-SA information that I included in my TurboTax HSA interview and say "yes" when they ask if it has been used for qualified medical expenses. I will keep all the medical expenses with me.
I don't want to go about asking the old HSA trustee to reopen my old HSA so that I contribute the amount back as mistaken distribution since I have qualified medical expenses. They have already said that they can't issue corrected 1099-SA since my account is closed. If IRS asks in future about the discrepancy between 1099-SA that they have from my old HSA trustee and what I mentioned in the tax return, I could tell them the same and probably show the medical expenses if they ask for it.
I hope I followed what you were suggesting. Thank you very much for your patience in explaining everything and answering my queries.
