Yes, I understand that. What I'm questioning is why TurboTax using the HSA distribution to offset 2023 expenses on the medical expenses worksheet (Line 13b) thereby reducing my deduction. That's the part I'm not grasping. Why am I reducing my 2023 medical expense deduction for reimbursing 2022 medical expenses?
[edit] My total unreimbursed 2023 medical expenses exceeded 7.5% of our 2023 AGI. For example, $100K AGI, $10K unreimbursed medical expenses making $2500 worth of medical deductions. But my HSA reimbursement of $6K for 2022 is counted against our $10K spent in 2023. The result is that TurboTax calculates we only have $4K of unreimbursed medical expenses in 2023. Therefore no deduction. [/edit]
Perhaps I'm learning an unpleasant lesson. If I had taken an HSA distribution that exceeded my 2023 medical deductions it appears TurboTax would tell me I had screwed up.
