@k3offline
There are two consequences for contributing an excess amount. First, the excess is added back to your taxable income, and second, there is an additional 6% penalty.
$7100 is your excess contribution. That amount will be added to your taxable income because it was not allowed to be contributed to the HSA tax free.
Then, there is a 6% penalty based on the amount of excess contribution that remains in your account at the end of the year, or your account balance at the end of the year, whichever is lower. In your case, if you withdraw the remaining $5500 as a return of excess contribution before the tax filing deadline, then your balance will be zero and you will not be charged the additional 6% penalty.
