What did TurboTax calculate differently? Was the Distribution Code 1 on Form 1099-SA?
To enter the information you have provided so far, you would enter Form 1099-SA as it appears. The following screen asks Did you spend your HSA money on medical expenses only? You would enter No, I didn't and then I spent part of it on medical expenses and enter $3,208. The remaining amount would be subject to the 20% penalty unless the HSA holder is over the age of 65, disabled, or passed away.
