I overcontributed in HSA in 2020. I got off HDHP plan in Apr 2020 due to eligible life situation changes and haven't gone back to HDHP plan. I didn't pay much attention to my tax returns and did overpay the excise taxes for tax year 2020 and 2021. In 2022 when I noticed the problem, I withdrew the overcontribution from my HSA account. So, in Feb 2023 my custodian sent me the right 1099-SA with the distribution code as 'excess contributions'
When in turbotax I enter the 1099-SA it still doesn't deduct the overcontribution, it says since I am not on HDHP plan and the overcontribution was earlier than 2021, this overcontribution can't be withdrawn. It still adds 6% excise tax in my 2022 return. How do I correct this and say that I have already withdrawn and my excess contributions should be removed now.
