In 2023 I had a single HDHP and contributed $3,850, my wife, however, was on a family HDHP and accidentally contributed $7,750. My wife contacted her HSA provider in early 2024 when we noticed the error and withdrew the excess contribution ($3,852 - $3,850 + $2 in earnings on the excess contributions). I just noticed that on schedule 1 of our 2023 return Turbo Tax included $3,850 on line 8f as well as $3852 on line 8z for a total of $7,702 in additional income in 2023. It appears to me that we paid taxes on this twice in 2023. Is that correct? If so, is there anything we can do to correct it?
Additionally, we received a 1099-SA in early 2025 for the excess contribution. Box 1 has $3,852, Box 2 has $2, and Box 3 has distribution code 2. It seems like if I report this on the 2024 tax return we will pay taxes on this amount for a third time. Is that true? How do I report this 1099-SA without paying taxes on the excess contribution again?
