Thank you for your patience and coaching. I appreciate it.
One interesting thing I learned. I think I would have been better not using HSA funds in 2023.
In the example, if I would have paid all $8700 out of pocket (not using any HSA funds), the total on the "Medical Expenses Worksheet" Line 14 would have been larger (and Schedule A Line 1 as it is the same value). This would provide a larger deduction lowering my tax bill. If this is correct, it makes sense why when I reduce the HSA amount, my "Federal Tax Due" is lower (the larger deduction lowers my tax bill).
Guess I could have used a better crystal ball to predict my 2023 taxes. 😉
