Hi! So sorry that happened! The good news is that there is a way to fix it, but it will require some careful work on your part. The cleanest way to correct an error made in previously filed tax returns is to amend those previous tax returns – one at a time -- starting with the return you filed for tax year in which you made the initial error. You should not attempt to correct this on your current tax return.
Assuming you used TurboTax to prepare your previous return(s), please follow the instruction in this article: How do I amend my federal tax return for a prior year? You can also amend any state return using the same procedure.
You have 3 years after the date you filed the original tax return or within 2 years after you paid the tax due on the original return, whichever is later, to amend. See this TurboTax article: What is the deadline for filing an amended return?
As mentioned, prepare and file the amendment for the first tax year you mistakenly entered your HSA contribution as an excess contribution. You’ll also then have to amend your subsequent returns because, as you know, the penalty was assessed each tax year that the mistaken excess contributions remained in your account. You should see a refund of the amount you overpaid in the prior original returns.
I hope this is helpful.
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