"How will this be handled on my 2022 taxes where I will have made a 2022"
The withdrawal of the 2021 excess (before April 18, 2022) will not appear on your 2022 return - it will appear only on your 2021 return (the one you are doing now).
"contribution of $4,650, only had medical expenses of $3,450 but the account balance will be $0?"
Don't worry about it - the contributions and the distributions are totally asynchronous. That is, this is not an account where it has to balance every year. If you have contributed more this year than you have spent, then what remains carries forward; if you have spent more than you contributed (because you had a balance in the HSA), then your HSA balance is reduced. But the IRS expects the numbers to vary from year to year.
"I would assume this would then show up on line 14B of form 8889 but it doesn't and it also does not allow me to manually enter it there. "
Yes, the excess withdrawn should appear on 14b. But NOTE, if you are filing married joint, there will be two 8889s, an 8889-T (for the taxpayer) and an 8889-S (for the spouse). Make sure you are looking at the right one.
In any case, please do NOT force any entries on the form - that will keep you from e-filing. Instead, please look for two 8889s and see what you've got.
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