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Hi, thank you for your quick response!

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?

I can't see my 1040 at the moment. I assume that TurboTax does not allow me to see forms until I complete forms fulfillment and end the whole process. But the contribution was made by my employer.

"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?

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I got a such message

with such text: "Please complete the HSA Distribution Request Form and select “Excess Contribution Removal” as the reason for your withdrawal."
I did as requested, but because I wasn't sure about the correct amount, I asked for 300$, which will cover the excess contribution.

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"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.

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The only 1099-SA that I have is 1099-SA (2023), and this form was issued on 1/8/2024, so before I filled the form to remove the excess contribution, and before distribution was processed. So, the only distribution that I have on that form is related to my normal medical spending during 2023 with code 1.

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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.

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Updated means Corrected. After fulfilling my request, I thought I would receive a corrected 1099-SA (2023). But I did not get the corrected 1099-SA (2023). As I understand, the requested 300$ distribution was done after 31 Dec. This distribution will go in 1099-SA (2024), which I will get next year.

As I understand, I was not allowed to remove 300 as an exceeded contribution removing process because my exceeded contribution was 214, but it still gets processed, and I need to verify how it was done.

I will call the HSA custodian tomorrow to verify that it was processed as an exceeded contribution removal.

Also, please help me understand which year 214 will be counted as my income. If my custodian made an issue and proceeded to remove 300, not as an exceeded contribution, I will need to request it again but on 214 exactly. I anyway will receive them in 2024, but it will still be the 2023 tax year.

Again, thank you for your help!