How to handle HSA overcontributions from 2022 for 2023 taxes

Hello wonderful community,

I have read a lot of different posts related to issues similar to my own, but it really got into the weeds with some of the responses and I just started getting confused about what I should be doing. I thought I'd post here to be sure that I understood my situation correctly and what exactly I need to do in order to correctly file my 2023 tax return. 

Situation: 

• 2022:
  • Husband overcontributed $1000 to his HSA.
  • Paid 6% excise tax on overcontribution and planned to reduce HSA contributions in 2023 by $1000
• 2023:
  • Both of us were under a Family HDHP and made contributions to our individual HSAs (so max contribution allowed as in 2023 was $7750)
  • Forgot to reduce contributions for 2023 by $1000 and ended up contributing the following amounts:
    • Me: $1283
    • Him: $6775
    • In total, we overcontributed $1308 for 2023
• 2024, ie. now: 
  • Filing for 2023 taxes (extended till Oct deadline)
  • When filling out TurboTax
    • I included that my husband had an excess contribution from 2022 of $1000
    • I filled out the section "Any employer and payroll contributions made but withdrew before April 15, 2024" with
      • $1283 for myself (I'm interpreting this section as "Did you make any withdraws due to overcontributions?" - is that correct?)
    • TurboTax gives a message saying "You contributed $1308 more to your HSA than you were allowed. From this amount, you may allocate $1283 of excess contribution between you. Who should we treat as having made the excess contribution of $1283?"
      • I selected myself
    • TurboTax later says "You may want to withdraw money from your HSAs. It looks like [your husband] has an excess contribution of $25. This amount is being taxed an extra 6%." 
      • Just curious why is it saying the excess is $25 and not $1308? Anyone have insights on this?

What I plan to do: 

• Submit request to HSA banks to withdraw the overcontributed amount of $1283 from my HSA and $25 from his HSA
• In 2024's tax return:  report the above as income as additional income with the 1099-sa the banks would issue us

My questions to the community: 

1. Is this the best way to handle the overcontributed amount?
2. If I did this, would we eliminate the need to pay any additional excise tax on 2022's $1000 overcontribution? Or regardless of what we do, we'll always pay an excise tax on 2022's $1000 overcontribution?
3. Is there anything we'd have to worry about with our 2024 HSA contributions? 

Thank you so much for your help! Hope I wrote this out clearly, if not I'm happy to revise/ clarify 🙂