OK, the first thing I see is that "The fact that your excess in 2021 is the sum of all your contributions and your carryover ", in your case, that was not true and you didn't notice it.
You (the primary taxpayer) has $7,160 in taxable employer contributions BUT you also have $20 tax-free employer contributions. And your spouse has $200 in taxable employer contributions, but let's look at the primary first.
The fact that you had $20 in tax-free employer contributions means that you did indicate that you had HDHP coverage (or else this would have been zero).
So we have two possibilities:
1. You have a large carryover of excess contributions from 2020
2. You told TurboTax that you had overfunded your HSA in 2020
So, did you have excess contributions to your HSA in 2020? If so, how much? Did you withdraw that excess in early 2021, or did you carry this over to 2021? Look at your 2020 return for form 5329. Is there an amount on line 48? This is the excess your carried to 2021.
Alternatively, if you did have an excess in 2021 but you withdrew it all, you "cured" the excess (as if you never had it). So when you saw the question in the HSA interview asking if you had "overfunded" your HSA in 2020, if you cured the excess for 2020, then you should have answered NO. Did you answer YES and enter an amount of the original excess?
Do you recognize either of these situations?
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