I'm doing a friend's tax return in Turbotax Desktop. There were excessive HSA contributions that carried over from 2024TY into 2025TY. She got busy and didn't get her remaining excess withdrawn in 2025 calendar year. As a result the excess is showing up on the HSA screen with the $40 tax on the 2025 return I am working on right now. In April she contacted the company managing the HSA and requested they withdraw the remaining excess before the April 15 deadline, which they evidently did. How do I enter this excess withdrawal done in April of 2026 and get it applied to the return for 2025 so that we are at zero with the ex and also zero on the 6% tax? Can someone give me the EXACT, STEP BY STEP directions on how to get this done and I am running into dead ends on my Google searches for her situation. I must be missing something very simple but could use help with the specific instructions, beyond what I am finding online. Thanks in advance for any help.
Here is the "Your HSA Summary" screen
Here's what we have for your HSA. You can make any changes if needed.
| Deduction | $1,119 |
| Total distributions | $3,029 |
| Taxable distributions | $0 |
| Taxable earnings on excess contributions | $0 |
| Tax-free company contributions | $3,181 |
| Excess company contributions withdrawn | $0 |
Where could I enter the "excess contributions withdrawal" that she just did that would reduce her down to zero and thus make the 6% tax also go away. There is a zero on the excess company contributions and I want to have $671 in there which is what the HSA company pulled out and distributed to her in 2026 as excess contributions from previous years. How do I enter that withdrawal made in 2026 (1st quarter) and get it applied to the 2025 tax year? Do we enter a second 1099-SA with the withdrawal amount of $671 and enter "2" in the box to signify excess withdrawal. This is driving me crazy!
