@Maintguy your problem is that you contributed to the wrong HSA. An HSA is owned by one person, it is not joint or co-owned with a spouse. If your spouse is covered by an individual HDHP and is over age 55, she could contribute $4450 to an HSA in her name, but nothing to an HSA in your name.
Going forward, you can certainly do that, if she is still covered by an individual HDHP. There are many banks that will open a private HSA if her employer doesn't offer one.
Since you were ineligible to contribute to an HSA in your name, the entire $7900 is subject to regular income tax. The 6% penalty applies to the ineligible contribution, or the balance remaining, whichever is smaller, so the 6% penalty should be virtually zero if your ending balance was $11. I'm not sure about a 10% penalty, I'll ask someone else for help.
