So what was the total excess calculated by TurboTax for 2022? $75? or $175? or what?
In any case, I gather than the excess was not withdrawn (and that you said so to TurboTax on the 2022 return), so there is a carryover of $175? to 2023. The carryover will appear on line 48 of the 2022 5329, which calculates the excise tax (usually called a "penalty").
This carryover will be added to line 2 on your 2023 8889, so that TurboTax will try to use the carryover as a personal contribution to be applied to your 2023 annual HSA contribution limit. If it can, then the carryover will be extinguished. Other wise, the new excess will be carried over to 2024.
If this is possible, you will be able to wrap up this "mess" (as you said) with reasonable ease.
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