Medical Expense Deduction is deducting the HSA distribution from the Total Medical expense.

[ashvin-raosn]

Me and my spouse's total medical expenses are coming to: $29k+ and the HSA distribution was $7,191. The Turbo Tax calculation is subtracting the HSA distributions from the Medical expenses which is incorrect. The HSA distribution was used for Qualified medical expenses (deductible and co-insurance) which is not part of the medical expense deduction we need to claim.

Message while filing out the Medical expense deduction:

Confirm the amount you withdrew from your HSA/MSA to pay for medical expenses
We just want to make sure this money was used to pay for the medical expenses you told us about on the previous screens.
If the amount is incorrect, go back to Wages & Income and edit your Form 1099-SA.
Medical expenses paid with an HSA/MSA

[ghost]

Include the medical expenses that have been paid with the HSA in your itemized medical list. The program will automatically subtract the 1099-SA amount to make the total correct. It's  confusing because you would not expect to list the HSA items.
See this TT FAQ.

https://ttlc.intuit.com/questions/2895072-can-i-deduct-medical-costs-paid-through-my-hsa-or-msa