Thanks for the thorough answer.
The HSA funds were withdrawn as excess contributions, and included the attributable earnings. This was done with the HSA custodian through a form specific for withdrawing excess (the custodian is Fidelity). They sent her a letter confirming the exact amount to be withdrawn as excess - and it is all done now.
Turbo Tax is not recognizing the excess. It is actually not excess until my wife does not have an HDHP for all 12 months the following year (we anticipate this). But Turbo Tax doesn't ask if she will meet the one year test so it assumes that it is not excess.
The bulk of contributions in 2022 and all of the excess was made as a direct contribution, not from the employer, so it is now in TurboTax as a (substantial) deduction from our taxable income.
She will only qualify for six months in 2022, so the excess withdrawn was $3,650 plus $46.30 attributable earnings. Originally she had contributed up to the family limit for the full 2022 year.
So not sure what to do. Will it all come out in the wash on 2023 return after I get proper forms from Fidelity HSA?
Thanks,
Jacob
