Are you also filing a Schedule A?
TurboTax automatically transfers the distribution amount to Schedule A as a reimbursement (like an insurance reimbursement). For most taxpayers, this makes no difference, but this will reduce the amount of medical expenses that you can deduct on Schedule A - this could explain what you are seeing.
If this is the case, the way to fix this is to go back into the Schedule A interview and add in the Miscellaneous section at the end wit a medical expense with the description of "HSA adjustment" and the dollar amount equal to the distribution amount. Then, if this is the issue, your refund will go back up to what it was.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
