Your Health Savings Account (HSA) distribution should be reported to you on a Form 1099-SA. When you enter the information from the 1099-SA in TurboTax, you'll be asked "Did you spend all the money you took out on medical expenses?" In your case, you would answer "No, I didn't". You can then indicate whether your spent any or none of your distribution on medical expenses. Continue responding to the onscreen instructions. At the end of this section, TurboTax will display Your HSA Results, which includes the amount of taxable HSA Distributions, i.e, the amount of distributions you did not use to pay for qualified medical expenses. (See attachment for reference.)
