HSA distribution for qualified medical expenses being treated as income

[dk]

I have TT home and business 2018. It states that "

Why is my HSA distribution taxable?

HSA distributions (money taken from an HSA account) are nontaxable, but only if the money is used to pay for qualified medical expenses. If the money is used for anything else, it's taxable.

After you enter your 1099-SA form, you'll be asked Did you spend all the money you took out on medical expenses? (This refers to the Box 1 amount on the previous screen.)

If you answer Yes, the entire distribution is nontaxable. But if you answer No, the portion you didn't spend on medical expenses is taxable income which appears on Form 8889, line 16 and is transferred to Schedule 1, line 21 of your 1040 form."

So, I check the "Yes" but it ignores that and goes on to tax my distribution creating form 8889, line 16 and is then transferred to schedule 1, line 21 of my 1040. I tried to delete my 1099-SA and re-enter the information, but get the same results. I even trashed the entire return and started new and still the same error. 

[JustRay]

I am having the same problem today in TurboTax Deluxe.  It was OK before the updates it made today.  My HSA distribution is considered taxable even though I answered the question with "Yes, I only used it for medical expenses".

[Cyclesafe]

I have exactly the same issue.  Worked properly before today's update download.

[arnrob]

My experience exactly!

[gbeumee]

me too!  ANYONE have an answer for this?

[NCperson]

Are you using online or cd/download?

and can you please post what is on lines 14, 15, and 16 of Form 8889?