Should HSA Distribution be subtracted from Medicare Premiums?

[tssndo]

Hello. I'm on the Medical section of Deductions & Credits and noticed that Medical Expenses appear to be HSA Distribution subtracted from Medicare Premiums. I then see this appear in Schedule A > Line 1 of "Medical and dental expenses." In another tax preparing program, I see they are not subtracting HSA Distribution from Medicare Premiums. What is the expectation here as it seems TurboTax is doing it one way by this other tax preparing program is doing it differently. Thank you!

[DavidD66]

HSA distributions cannot be deducted, as contributions to, and earnings in an HSA are not taxed.  If Medicare premiums are being paid with HSA funds, those premiums cannot be deducted.  

[tssndo]

No, the Medicare premiums were not paid with the 2023 HSA distribution. With that, is it correct that Medical Expenses in Schedule A are the sum of Medicare Premiums less HSA distribution? In the screenshot below, the "Medical and dental expenses" is the same amount as the HSA distribution from 1099-SA and the Medicare premiums are from SSA-1099. 

[BillM223]

What is happening is that TurboTax assumes that you will enter ALL medical expenses into Schedule A. As part of that process, you are also asked to enter insurance reimbursements. 

As a favor to you, TurboTax then transfers all HSA distributions to Schedule A as a reimbursement for all the medical expenses that you paid for with the HSA. This is great...unless you never entered any medical expenses paid for with the HSA.

This HSA distribution transfer is automatic, and you can't turn it off.

So if you don't want to enter each separate medical expense paid with the HSA, I suggest you enter a single Miscellaneous entry into Schedule A -  amount equal to the sum of all HSA distributions (probably your one 1099-SA), and a description of "total of expenses paid for with HSA".

Make sense?