Deductions & credits

Yes, just as you should enter the amounts eventually paid by your insurance.

The reason is that TurboTax will automatically subtract the HSA distribution you report on form 1099-SA from your Medical and Dental Expenses, so if you don't report the HSA-paid expenses, your Medical and Dental expenses will appear to be too low.

Note that TurboTax asks you at the end of the Medical and Dental Expenses interview to enter your insurance reimbursement as well. But since this is, in a sense, optional, you can enter just the unreimbursed medical expenses in the interview and put zero for the insurance reimbursement.

But since the HSA distribution is automatically subtracted from your medical expenses, you don't have that option. You should either enter HSA-paid medical and dental expenses OR enter a single line at the end of the Medical and Dental Expenses interview for miscellaneous expenses: "expenses paid by HSA" followed by the amount of the HSA distribution. This will balance out the automatic subtraction and make your total medical and dental expenses correct.

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