Should the additional income from a Qualified HSA funding distribution that did not meet the testing period requirement be reported as 2016 or 2017 income?

I made  a qualified HSA funding distribution from an IRA in March 2016.I became ineligible on March 1 2017, When I read the IRS Pub 969 it says the now taxable income from that distribution is reported in the year you become ineligible.  In my case March 2017.  TurboTax is reporting this as 2016 income    Am I misunderstanding the IRS instructions?  If not, how do I work around this?