"Yes, my employer gave me an additional 329.48 on my last paycheck and this amount was deducted from the YTD HSA contribution on my paystub."
That 329.48 will be taxed as part of your Wages, so that's OK. The amount listed as deducted from the YTD HSA contribution, we can ignore, because we are going to take care of it another way.
"After the HSA custodian mailed me the check, the HSA amount is 7,200 now."
OK, you have withdrawn the excess. You will tell TurboTax this when the time comes (see below).
"Yes, I received 329.48 twice, once from your employer and once from the HSA custodian. "
Let's don't worry about this. They gave you a bonus and you're being taxed on it, as is normal.
***
OK. In TurboTax, when you entered your W-2, make sure that you entered 7,200 as the code W amount in box 12. This will match your W-2 (this prevents curious notes from the IRS, who has a copy of your W-2).
In the HSA interview, you will start and make whatever entries are required. On the screen entitled ""Let's enter [name]'s HSA contributions", you will see 7,200 prefilled in the top box (good). Do NOT enter anything in the second box ("personally made").
The next screen is titled, "Did your employer tell you about any other contributions?" Despite the comment here about "previous year", you will check YES.
This will cause three lines to appear below. In the third line ("Employer and payroll contributions not reported in box 12 of your W-2"), you will enter the 329.48. After all, this is a contribution made through your employer that was not listed on the W-2.
This extra money will force TurboTax to realize that "you" made an excess contribution (I put "you" in quotes because you get to report every contribution whether you or someone else made them). TurboTax will then ask you how do you want to handle the excess: withdraw it all, withdraw some of it, or let it carry over to next year.
Since you have already withdrawn the excess amount, this is easy, just say that you will withdraw it all by the due date of the return.
What will happen is that TurboTax will add the 329.48 to Other Income on line 8 of Schedule 1 (1040), which is OK (if you get money, you owe tax on it). Then in early 2023, like the HSA custodian told you, you will get a 1099-SA for the 329.48 with a distribution code of "2", so that you can report the earnings on your 2022 return. Oh, if you spend any HSA money on qualified medical expenses this year, you'll also get a separate 1099-SA for that as well.
And, you're done.
Just keep records of everything you did in case anyone ever asks, but you should be in great shape vis-s-vis your HSA.
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