seems Turbotax is wrong. from PUB 969
You may withdraw some or all of the excess contribu-tions and avoid paying the excise tax on the amount with-drawn if you meet the following conditions.
•
You withdraw the excess contributions by the due date, including extensions, of your tax return for the year the contributions were made.
•
You withdraw any income earned on the withdrawn contributions and include the earnings in “Other in-come” on your tax return for the year you withdraw the contributions and earnings.
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from another source
One way to correct HSA excess contributions
Withdraw the excess funds. You can remove extra HSA contributions and income attributable to such excess by withdrawing them from your account before the deadline to file taxes. If you file for a tax extension, that date is considered the deadline.
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code section 223(f)(3)(A)(i)
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so with this goof in the app, I would answer yes/ok assuming you complied with both requirements - withdraw excess and income.
