Why did you close the HSA?
TurboTax is not the problem, you are. When you have an excess contribution, you are encouraged to withdraw the entire amount of the excess by the due data of the return. When you can't, the balance becomes an excess contribution which carries over to the next year.
Note that the HSA is not a savings account from which you can willy-nilly remove dollars; that's why TurboTax will not let you remove more than the amount of the excess. TurboTax calculates what the excess is, and that's all you should remove as an excess.
And if that's more dollars than you have, then you will carry the balance over to 2024 and deduct that amount then as a personal contribution (line 2 on the 8889). That is, remove what ever you can, and carry over the balance.
And as for as "when the TurboTax wizard goes through and wants me to state if Sasha had coverage during 2023 for a HDHP and I select "Self-Only" it does what you said it would do, and prompts me to choose an entry for each month of coverage during 2023, which I set to "None" from January-December." where did you de this? Or, more accurately, there are several places in the HSA interview where this can happen - which one was it? It makes a huge difference to how we respond to it.
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