I've added the 1099-SA information with the Gross Distribution and earnings. It has a Distribution Code of 2, which is for withdrawal of excess contribution. After entering this, we saw our federal tax due increase, accordingly with taxes on the earnings. All good there.
I then went back through the information for our HSA's after entering the 1099-SA information. It still shows the same amount of excess contribution. Confirmed that we both had HDHP - mine was Self Only, my wife's was a Family plan, neither of us had Medicare, and neither of us had any additional contributions beyond what was on our W-2's.
Knowing that we have already withdrawn our excess contributions from 2020 before the deadline in 2021, we should just note that we are withdrawing the $125 overage from this year, despite TurboTax stating we had an excess contribution of $2,750, correct?
