Hello - In 2023, I had HDHP (self-only) coverage from January - November and terminated November 30. I had contributed $3,850 all through my employer but because ended my coverage my limit ended up being $3,529 so I have $321 in excess. I’ve just requested the excess be returned through my HSA custodian as of March 2024. I am a NJ resident and these wages were from a NY employer. I would like to make sure everything is being reported correctly:
Form 8889 line 9: Even though these contributions were removed as an excess distribution from my HSA custodian in 2024, the full amount of $3,850 from box 12 code w of my W2 should be reported, is that right?
Form 8889 line 14b: Should the excess contribution + earnings be on my 2023 return or my 2024 return? I understand that because the excess distribution was made in 2024, the 1099-SA reporting it will be dated 2024.
Income: For 2023, the excess contribution is added to 1040 Other Income as it was not included in W2 box 1 and for 2024 the excess earnings are added to 1040 Other Income because it was not distributed until 2024, is that right? How does this get reported on my NY IT-203 this year? It looks like the $321 should be in both the federal and state boxes of Line 16 Other Income as this was from a NY source.
