But your employer also knows that you reversed a $4,000 contribution - they even gave you the form to do so.
Make another run at your employer about changing the W-2. Otherwise, do the following:
1. In the HSA interview, there is a question, "Did your employer tell you about any other contributions"? Click on Yes, and three new lines will appear. On the last line: "Employer and payroll contributions not reported in box 12 on the W-2", enter "-4000" (i.e., a negative 4,000) to show the reversed contribution. This will subtract the 8,000 down to 4,000 in TurboTax, so you should not now have an excess.
2. Document everything you did and why and stick it in your tax archive. This is not a normal situation but you are allowed to finagle with TurboTax to get the correct results for the IRS.
Make sense?
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