Yes, you would be considered to have excess contributions in 2020 if you didn't withdraw the funds. The 6% excise tax applies to each tax year the excess contribution remains in the account. Spending it is not the same as withdrawing it. If you had withdrawn before you filed your 2019 taxes, then it would carry forward and TurboTax would not ask you about the excess contributions. Excess contributions aren’t deductible, and any excess contributions made by your employer are included in your gross income. If the excess contribution isn’t included in box 1 of Form W-2, you must report the excess as "Other income" on your tax return. .
Deducting an excess contribution in a later year
You may be able to deduct excess contributions for previous years that are still in your HSA. The excess contribution you can deduct for the current year is the lesser of the following two amounts:
Amounts contributed for the year include contributions by you, your employer, and any other person. They also include any qualified HSA funding distribution made to your HSA. Any excess contribution remaining at the end of a tax year is subject to the excise tax. See Form 5329.
