OK. Here are the details. I was covered 4 months under a family HDHP plan and the rest of the year was not. So I am eligible for 1/3 = 4/12 of the total eligible amount = $2733. ($8200 for the year / 3). Spouse is the same so our total max HSA amount is $2733 for 2021, which I just contributed in 2022 for the tax year 2021. The overcontribution was done in my spouse's HSA and IRA and returned to her IRA.
Now the problem is in turbotax - when I enter the 8200 that was initially contributed and later withdrawn from my spouse's account, it doesnt recognize that all 8200 is ineligible. It only recognizes that 7867 is ineligible and only allows me to enter that amount as that withdrawn, not 8200. in the form 8889-S it lists 4 months of eligibility for my spouse with a max allowable of 2400, which transfers as 0 to line 6 in form 8889-S. Because she is over 55, it adds an additional 333. (1000/4). So the max allowable is 333 in line 8 of 8889-S. This makes no sense to me, it should be 0 I would think. So when it calculates excess contributions, it doesnt list 8200, it lists 8200-333=7867 and then it doesnt allow me to enter 8200 as withdrawn. These are shown in the smart worksheets. The actual form 8889-S looks OK because it lists that I distributed 8200 that I rolled over and did not incur any tax,
