"HSA extends from January 2023 thru Dec 2023" - your HSA is an independent financial instrument that has a life similar to an IRA. That is, the HSA belongs to you or your spouse, not to your employer. And once it is created, it will continue to exist, even if it goes empty.
So, "HSA was again started in January 2024 per benefit election." is not true - the HSA continues to exist unless YOU close it. An HSA is not like an FSA. See link at bottom of this post.
"These contributions will need to be marked as Other income be taxed" - please do NOT do anything about this. Once you have done the HSA interview, indicating that you did not have valid HDHP coverage for those months you were covered by the FSA, TurboTax will automatically add the excess contributions back to income. Please don't try to help TurboTax..
You will file a request to withdraw excess HSA contributions (if you haven't already), and as dmertz notes, you must do this before the due date of the return. I suggest now because there is that 6% penalty if you miss the deadline.
The HSA custodian will take your completed form (note that it is often available online at the website), and return to the excess to you. Yes, you'll have to pay tax on it, but you'll have the cash to do it.
If it turns out that you don't have enough cash in the HSA to cover the excess, then withdraw what you can. The excess will carryover to next year, with a possible 6% penalty. Then NEXT year, the carryover will be applied as a "personal" HSA contribution (line 2 on the 8889) so be sure to reduce what you would ordinarily contribute to allow the carryover to be used up.
Did I cover your issues (you had a lot of issues 🙂 )? Post again if you have another question.
Personally, I think that the HSA is a far better vehicle for covering medical expenses than an FSA. See this blog entry at TurboTax about HSA versus FSA.
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