So I made an Excess contribution because I did not understand that my entire family had to meet the family maximum contribution of $7000. My husband as a single high deductible insurance holder under the age of 55 made a contribution of $3500 to his HSA account in 2019, and I made a contribution of $7000 as a family high deductible insurance holder under the age of 55 into my HSA account in 2019. I understand the mistake now, I wish I understood it before, but I am working with the HSA service provider and have submitted the Excess Contribution form to withdraw $3500 plus interest before 4/15 from my account. They told me that should be process by the end of the week, and it will take a little longer for them to issue a 1099SA, but they will issue a corrected document.
I have not filed taxes yet assuming I need the 1099SA before I do, or at least it seems safer, but my question is during 2019 I had withdrawn more than $3500 from HSA; therefore, I will get the Excess contribution amount of $3500 plus interest back as other income, the new 1099SA will state that my 2019 contribution was $3500, but is it going to be a problem if the withdrawn amount for 2019 is something like $4200? Or based on the fact that the excess $3500 is being withdrawn before 4/15, is it going to be like the extra $1200 came out of there so in the end it does not matter?
I hope my question makes sense. I asked my HSA service company, but they told me that they cannot answer any tax related questions.
