Ok, I got back home and looked at everything again. I then tried checking the Medicare boxes correctly, so that TT knew that I could only contribute for 4/12 months to my HSA. Medicare A vs B doesn't apparently matter. At first the tax went way up, but I had an error in the sharing between me and my wife's HSA, it had all of my contribution put toward my wife's HSA.
Once I figured that out and ran through the Step-By-Step, I found that my excess that I had returned of $2153 on the 1099-SA was more than needed. The $703 was no longer the excess, now it had it figured as $1978 (see below).
We had 7750 + 1000 bonus for my wife (>55) + 333 bonus for me (4/12 * 1000). TTax figure that all out, and had the $2916 max for my contribution. I finally ended up with the actual excess being $1978, the employer contributions for 2023 - the $2916 limit.
Since again, I'm over 65, there is no 20% penalty, but I actually had $2153 returned on the 1099-SA + $59 of interest earned on the same 1099-SA. TTax has entered $2037 on Sch1 line 8f (Income from Form 8889) which is the $1978+59, but I can't figure out where to put the $2153-$1978 = $175 of HSA withdrawal as income. Do I just add this to the 8z line of Other income? I can't see how I can get it on the 8889 form. TTax doesn't like me adding it to 12B on the 8889 form.
The ~5500 we put in my wife's HSA was deducted from our income so it can't count toward that. I think the $175 should be taxed, but I think I have to do this manually on Schedule 1.
Again, thanks for any help.
