RobertB4444
Expert Alumni

Get your taxes done using TurboTax

Unfortunately the only people who can tell you how much interest the over contribution has earned are with Fidelity and you're going to have to contact them.  They will give you that amount and return it to you along with the original over contribution which has to be out of the HSA before you file the 2024 return so that you don't have to pay the penalty two years in a row.

 

So forget about the 2022 taxes for the overcontribution.  You pulled that out on time.  So you did as you promised.  The 2023 overcontribution is what we're working with now.

 

First, go back to 2023 and amend that return.  Say that you did not remove the overcontribution and then pay the penalty.  (If it were me I would immediately bill Fidelity for the penalty but that will be up to you.)

 

Then, after you have filed the 2023 amendment you will go file your 2024 return.  TurboTax will still show the 2023 overcontribution as in your HSA account and it will once again ask if it has been removed.  You will answer yes and then enter the interest that the 2023 overcontribution has generated and that will be taxable income to you.  Then, you will enter the redeposited 2022 overcontribution as a 2024 overcontribution.  But you will say that you pulled it out on time as well.  And then you will enter the interest from that and that will be taxable to you as well.

 

But then you'll be done with this nonsense.

 

Good luck.

 

@purplestar777 

 

 

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