I have taken a closer look at your token files at the request of PaulaM.
Everything with regard to your HSA contribution and Form 1099-SA distribution appear to have been entered correctly and accurately. There is a change in your balance due amount when the Form 1099-SA is entered and used for medical expenses. The medical expense deduction that is part of Schedule A, itemized deductions is affected by the Form 1099-SA distribution.
Because the HSA is funded by money that has not been taxed, when you take a distribution from the HSA to pay for medical expenses, you cannot also deduct those medical expenses that were paid by the HSA. That would be double-dipping the amount of the distribution. Therefore, the medical expense reported on Schedule A and subtracted as an itemized deduction is reduced by the amount of the HSA distribution.
That means your itemized deduction is lower by the amount of the HSA distribution, which then raises your taxable income and your balance due. It is essentially the same effect on your bottom line as if the HSA distribution were being taxed. It is just not exactly what is happening since the change is occurring in the itemized deductions section.
@Patty_21
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