"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. ( which you'll receive in 2025)"
Your excess contribution was made for tax year 2023. The excess - if it was part of the code W amount in box 12 on your W-2 - was automatically added to your Other Income for 2023.
The 1099-SA that comes with the distribution code of 2 may have the excess amount in box 1, but that will be ignored because of the distribution code of 2. Only the earnings in box 2 will be added to your income. And, yes, this 1099-SA is usually applied to the year after the excess was created, so excess created in tax year 2023, and the earnings taxed in tax year 2024.
Please stop trying to fudge the 8889 - it will be correct if you just make the Step-by-Step entries.
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