We personally contributed to an HSA and used distributions for medical only. why is it showing up under income? will that amount be added into my gross income number?

If you are referring to the Wages & Income menu with the title of "Your Income" at the top, the number to the left of the Start or Edit button on the line with "1099-SA, HSA, MSA" indicates the total amount of distributions, not the amount that is in your taxable income.

If it really were taxable, the number would show up on line 21 on page 1 of your 1040 with the description of something like "Health Savings Account". You can see page 1 of your 1040 by going on to left to "Tax Tools", then clicking on "Tools", then clicking on "View Tax Summary" in the box that opens, then clicking on "Preview my 1040" that is now on the left when the tax summary opens.

If the distribution really appears on line 21 of the 1040, then as RBBrittain suggests, you will want to return to the HSA interview (Federal->Deduction & Credits->Medical->HSA MSA Contributions) and check your entries, although it sounds like you correctly entered the distributions as qualified medical expenses.