Deductions & credits

When you click the button to show that the entire distribution was used for qualified medical expenses, be sure to hit Continue and wait a number of seconds on the new screen for the Refund Meter to change. If you jump to another page in the return before the change is recorded that all expenses were qualified, then TurboTax doesn't do the calculation yet showing that the distribution is non-taxable (even though I imagine that in the Review it will do it).

To be safe, after you start the HSA interview, go all the way to the end of the interview before exiting this section.