This approach makes sense, but my taxes went up when I included contributions from healthcare Premium payments ("Premium pass through") made through my paycheck. Both the employee contributions (box 12 W) and the Premium pass through (part of box 12 DD) are both pre-tax (tax free), so why would my total tax increase?
Background: my HSA is partially funded by employee contributions, and partially by an amount passed through from healthcare Premium payments. My box 12 W only shows the employee contribution but not the Premium pass through. I contributed slightly over the max limit, and withdrew the excess amount. If I enter the Premium pass through as "contributions not in Box 12", then Turbotax correctly identifies the overfunding and I can accurately check "I will/have withdrawn the excess". But why would my total taxes increase if all these contributions are taken pre-tax?
