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HSA Distributions reducing medical deduction
Turbotax deducted from my listed medical expenses the amount of the HSA distribution I took in 2022 . This distribution is for medical expenses incurred in 2018. In that year I took the Standard Deduction so I am still eligible for reimbursement from my HSA even though it is years later.
The Fix: Turbo Tax needs to ask if this distribution is for any of the medical expenses listed. If the answer is "No" then the program should not reduce the current medical expenses entered. They could also add a warning that if the medical expenses being reimburse are for a prior year, then for the HSA distribution to be non-taxable those expenses must not have been listed as a deduction in the tax year incurred.
Please fix this. A long time user
‎February 19, 2023
12:32 PM