During my 2024 income tax filing, my Turbo Tax desktop informed me that I had excess HSA contribution for $999 that I need to withdrew + the amount of earning. I contacted Fidelity to withdraw on February 14, 2025, to withdraw the $999 amount but forgot to add the earning. In my 2024 filing, I did not do anything regarding Form 8889 and Form 5329 (I though it would be done automatically)
I'm preparing 2025 filing entered 1099-SA as per form received (which showed Distribution Code = 1). I also did my HSA contribution for 2025 ($5,300). Turbo tax now show $999 withdraw as income and indicated that I still also have $50 excess to withdraw. I did some research and realize that distribution code should be 2 and I also have to withdraw and report the earning of that $999. I think it has to be something to do with Form 8889 and 5329.
dear Experts, can you guide me on what to do please?
