The moment that TurboTax detected that you had excess contributions for 2022, TurboTax added the amount of the excess ($112 only) to Other Income on Schedule 1 (1040) on your 2022 return - you need to do nothing.
As for the $18 that you withdrew in "excess" from your HSA, you need to identify an $18 medical bill that you can assign to this amount - it sounds like you are well on the way to doing this. Just write down the medical bill paid (in part ) by the $18 and stick in case your tax file because you won't remember this when someone asks.
You will receive (probably in late 2023 or early 2024) a 1099-SA for the withdrawal of excess contributions (the $130). It will have $130 in box 1, the $1.98 in box 2 for earnings, and a distribution code of '2' in box 3.
Because of the distribution code of '2', the $130 in box 1 will be ignored (The $112 was already counted as income in tax year 2022, and we will get to the $18 in a minute), and the $1.98 will be added to income.
The $18 needs to be manually added to income (because TurboTax added only $112 automatically). So go to Personal Income (or Wages and Income, whichever), then go to Less Common Income->Miscellaneous Income. Add a single entry for "HSA distribution" and $18. Write down on your copy of your return why you did this - you will keep a copy of your return, right?
Now you should be done.
Don't make any overrides in Forms Mode.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
