I see. The problem is that TurboTax is not allowing you to indicate the amount that was transferred to the HSA, so it doesn't appear on the Form 8889. Yeah, that's definitely a bug in the online version.
I think I have a workaround. Unmark the box where you indicate that the IRA was inherited. I believe that this will allow TurboTax to present the box where it asks how much of the distribution was transferred to the HSA and you can enter the amount. Then go back and edit the 1099-R again and re-mark the box to indicate that the IRA was inherited. I think that TurboTax will retain the amount that you entered during the workaround and include it on Form 8889 line 10, but I'm not sure.
