"Contributions Applied from Future Year" - OK, this means that the employer made the contribution in 2023, but told the HSA custodian to apply it to 2023. This is OK as long as the custodian did it.
But if I understand you correctly, TurboTax told you that you had an excess of $214 in HSA contributions for 2023.
Note that the moment this happened, TurboTax did one of two things: (1) if the excess was from your employer, then it added the $214 to Other Income on Schedule 1 (1040), or (2) if the excess was from your personal contribution, then the amount on line 13 Schedule 1 (1040) is reduced by $214. In your case, I am thinking that the $214 was added to line 8f on Schedule 1 (1040), right?
If I try to provide 300$, 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."
This is correct, because you can't withdraw more in excess than there actually was in excess. When asked ""Any employer and payroll contributions made but withdrawn before April 15, 2024" you should have answered with a number no larger than 214.
At this point, it looks like 214$ will be counted as my 2023 income
Yes, that it as it should be. But since this came from your employer, this is a good thing, because it means that your employer paid you $214 more than Wages in box 1 on your W-2 (but of course, you'll have to pay tax on this, too).
"On 1/12/2024, I sent the "HSA Distribution Request Form" with 300$ amount."
Did you mean that you asked the HSA custodian for a withdrawal of excess contributions (using this excess phrase)? If you just asked for a distribution, that's a problem. What did you actually ask for?
"On 02/06/2024, Excess Distribution was fulfilled with "Earnings on Excess Contributions:$0.00"."
What was the distribution code (box 3) on this 1099-SA, 1 or 2? If 1, then this is the 1099-SA for your regular medical expenses. If 2, then this is the 1099-SA for the withdrawal of your excess contributions, except I don't think you asked for a withdrawal of excess contributions.
"My 1099-SA (2023) form has no updates, and this distribution will go to 1099-SA (2024) form, as I understand."
What does "updates" mean in this case?
If you actually get a 1099-SA with a code of 2 in box 3, then the box 2 amount of earnings should be added to your income in 2024.
Please answer my questions above in bold.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
