In your case, the excise tax is based on the $950.
The "excise tax" (this is the correct term, but most people call it the penalty on the carryover of excess HSA contributions) is 6% of the smaller of the carryover amount or the value of your HSA on December 31 (for the 2023 tax return, December 31, 2023).
Before you file your return, please review your 8889 and 5329, because the excess HSA contribution is being doubled on some returns. Please see this article.
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