This is still not making sense. My refund goes down by quite a bit when I enter the HSA contribution on my W-2. The comments above to enter medical expenses in "Deductions..." is contrary to the instructions with TTax and counter intuitive to the HSA concept. There is an error in the calculation or something in the user instruction is incorrect.
FROM TURBOTAX
"Can I deduct medical expenses that were paid with an HSA, MSA, FSA or HRA?
Answer:
No, you can't deduct medical expenses that were paid with a health savings account (HSA), medical savings account (MSA), flexible spending account (FSA) or health reimbursement account (HRA). These are all pre-tax accounts, and you can't deduct medical expenses that were paid with a pre-tax account.
When you use a pre-tax account to pay for medical expenses, you're paying with tax-free money. You're not allowed to deduct tax-free money because it's considered double-dipping.
With the increased standard deduction starting in tax year 2018, the chances of being able to deduct medical expenses is significantly lower. Taking the medical expenses out of a pre-tax account is more beneficial to the taxpayer than taking the expenses as a deduction in the event you take the standard deduction."
