Medical expenses line 13B/HSA not being used for medical

[dimar1111]

Why is turbo tax taking the distribution from my HSA plan and taking it away from my medical expenses that I did not use my HSA plan on?  Line 13B. I entered in expenses not paid with my HSA but not getting the full amount deducted. Turbo tells you to edit your 1099SA form, but I can't change those figures. 

[BMcCalpin · Accepted solution]

TurboTax expects you to enter all medical expenses into the Medical Expenses interview (Schedule A). Then, near the end of the interview, TurboTax asks you to enter any insurance reimbursement. After that, if you have an HSA, TurboTax tells you that it is automatically subtracting the HSA distribution from the medical expenses.

Since many taxpayers put in only the net medical expenses and not the total, this means that their Medical Expenses are artificially reduced by the amount of the HSA distribution.

The easiest was to address this is to go to the Medical Expenses interview again, and near the end where you are asked for Miscellaneous entries for Medical expenses make an entry with the description of "HSA reimbursed expenses" and the dollar amount of the distribution. 

This will allow Schedule A to have the correct bottom line. No, you don't need to itemize all those HSA paid expenses on Schedule A, either; just the single HSA line will suffice.