I am filing 2022 taxes with desktop TurboTax Deluxe. I have a HSA and received approximately $3,200 in funds for medical expenses. I did not contribute to the HSA this year. I entered the 1099-SA amount in the proper place.
Then, the program instructs me to list my medical expenses, INCLUDING the items covered by the 1099-SA. It notes that you enter them all and the 1099-SA amount will be deducted from the expenses.
For federal, it does not do anything with these numbers because I will be taking the standard deduction.
But, the gross medical expenses (including reimbursed items) are passed to my Arkansas state return as a medical deduction which is not correct. I BELIEVE THIS IS AN ERROR. I can fix it by removing the 1099-SA items from the medical expense section.
