Hi, my employer mistakenly contributed to my HSA account on 01/08/2024. The contribution was made in 2024 but with line - "Contributions Applied from Future Year". And it goes over the 2023 year limit by 214$.
On 1/12/2024, I sent the "HSA Distribution Request Form" with 300$ amount.
On 02/06/2024, Excess Distribution was fulfilled with "Earnings on Excess Contributions:$0.00".
My 1099-SA (2023) form has no updates, and this distribution will go to 1099-SA (2024) form, as I understand.
During tax filing, on step "Let's enter Ainura's HSA contributions." I have a question: "Any employer and payroll contributions made but withdrawn before April 15, 2024". If I try to provide 300$, then the "Federal Review" step will give me an error "Form 8889-T: Line 12 Wks, line B should not be greater than the amount of excess employer contributions/excess HSA funding distributions." If I understand correctly it means I should provide the number of removed exceeded contribution, not total.
So, I provide 214$. In the next step, I see a big message which helps me understand my tax in detail. And in that message, I see "...and your income came from... and another income of $214. "
At this point, it looks like 214$ will be counted as my 2023 income, but I removed 300$, and I was thinking that it will be counted as 2024 income based on 1099-SA (2024).
So I'm not sure that taxes will be filled correctly now, and I need your help with this situation. It's also the first year of doing taxes and using TurboTax.
Please verify that what i was doing is correct and maybe help with future process. Thank you!
