If you charge you medical expenses to your HSA card are they considered as a cost?

[daniellek0224-gm]

I spent quite a but on medical expenses using my HSA account this year, is this included in the question "About how much did you spend on medical expenses?"

[xmasbaby0]

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

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.)  expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2022—do not include any amounts that were covered by insurance or that are still outstanding.  Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950  (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

Legally Blind + $1750

[BillM223]

Did you receive a form 1099-SA from your HSA custodian? This form will show all the medical expenses that you paid for with the debit card the HSA custodian gave you. 

"About how much did you spend on medical expenses?" Is this question in the Schedule A (Medical and Dental Expenses) interview? 

Note that any expenses that you entered in the HSA interview using form the 1099-SA are transferred automatically to Schedule A. You should have seen a screen telling you this (although its meaning may not have been clear).

This amount is subtracted automatically from your medical expenses because they are like an insurance reimbursement of sorts. However, this has the effect of artificially reducing the real medical expenses that you have entered. What you need to do is enter a "dummy" entry under Miscellaneous or "Tell about any other medical expenses". For the description, enter "Offset for HSA expenses" and the amount is whatever was on the 1099-SA.

This action will offset the automatic transfer by TurboTax to Schedule A so that your actual medical expenses are not reduced by the 1099-SA amount.