Used 2022 HSA dollars to pay 2021 bills and want to itemize 2022 expenses

[sle7]

I had a lot of medical expenses in 2020 and 2021 that I used 2022 contributions to cover.  Now I want to itemize my 2022 medical expenses.  However, turbotax seems to think that my 2022 contributions went to 2022 expenses, rather than previous years, so it it making it look like my medical expenses for 2022 are 5000.00 less than they really were.  Any ideas?

[Bsch4477]

If I understand correctly you paid medical expenses in 2022 using your HSA funds. If so, you can’t use those same expenses to itemize. 

[CatinaT1]

I understand you used your HSA funds to pay for expenses incurred before 2022. You also had expenses you paid in 2022 that were not paid with HSA funds and those expenses you want to itemize. Is that correct?

Likely, TurboTax is deducting the HSA distribution amount from the current year's reported medical expenses. 
 

To make everything work out in TurboTax, you will need to enter your prior-year medical expenses that the 2022 HSA distribution was used for so that they will cancel each other out.

Be sure the final result is only itemizing expenses that were not paid for with HSA funds.

[Opus 17]

First, remember you can only reimburse yourself for expenses that you incurred after opening the HSA.  For example, if you opened the HSA in June 2021, you can't reimburse yourself later for expenses you incurred before that date.

Second, remember that if you list your 2022 expenses as itemized deductions, and you later use your HSA to reimburse yourself, you may have to pay income tax on the reimbursement as a taxable recovery--a reimbursement of a previous deduction.

Then, if you are still planning to count your 2022 HSA withdrawal toward your 2021 expenses, you must enter your 2021 expenses in Turbotax.  This is because of how Turbotax handles medical expenses--it expects you to enter all your expenses regardless of how they were paid for, and then it wants to subtract all your reimbursements.  Since you loaded the 1099-SSA for withdrawals, you need to enter the corresponding expenses so the math balances, even if those expenses happened in a previous year.  The IRS doesn't get details of the expenses, only the final number of the deduction, which (after the HSA and the past expenses cancel each other out) would be the unreimbursed expenses you incurred in 2022.